Since the election of Donald Trump, bitcoin has seen a significant increase in value compared to the S&P 500. The incoming president has expressed his support for bitcoin and crypto, and with Republicans controlling the Senate and House of Representatives, potential laws that could affect crypto will be passed. The stock market has been negatively affected by the Federal Reserve's rate cut, while the value of the US dollar has increased. However, bitcoin has held up relatively well due to factors such as the ongoing supply deficit on exchanges. Recently, bitcoin and the S&P 500 have begun to move closely together, with their correlation reaching 0.88. While on-chain factors will continue to support bitcoin in the long term, the correlation with the stock market could pose short-term risks.



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