Bitcoin's relationship with Wall Street has evolved significantly, positioning it as a macro-driven risk asset rather than the anti-establishment, uncorrelated asset once envisioned. Its correlation with U.S. equities has risen sharply, diminishing its traditional role as a hedge, akin to 'digital gold.' Recent data indicates Bitcoin's correlation with the S&P 500 is elevated at 0.48, suggesting that its price movements now closely mirror those of stock markets driven by macroeconomic and geopolitical factors. Notably, Bitcoin demonstrates almost zero correlation with gold or the U.S. dollar, challenging its perceived status as a safe haven. Wall Street's increasing influence has shifted perceptions, prompting investors to treat Bitcoin as a risk asset affected by central bank policies and global conflicts. Although the foundational qualities of Bitcoin, such as its limited supply and decentralized nature, remain intact, the current market landscape forces it to act like a stock. Market sentiment driven by traditional financial narratives is likely to persist, significantly impacting Bitcoin's volatility and price movements.

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