 ▲ Bitcoin (BTC) |
Bitcoin (BTC) rebounded more than 10% in a single day after enduring a historic plunge of nearly 17%, completely breaking its correlation with U.S. stocks and proving its status as an independent asset class.
According to cryptocurrency-focused outlet U.Today on February 7 (local time), Bitcoin recovered the $70,000 level after overcoming the impact of massive liquidations the previous day. In contrast, the S&P 500 Index fell to 6,798, highlighting a sharp divergence between the two markets. CNBC’s well-known host Jim Cramer pointed to leverage-driven rotational trading as the cause of this unusual phenomenon, analyzing that investors are selling stocks to secure funds to buy Bitcoin.
Through his social media platform X (formerly Twitter), Jim Cramer noted that the enormous leverage built into the system is exerting downward pressure on the S&P 500 during Bitcoin’s rebound. He warned that a so-called “wag the dog” phenomenon—where the volatility of the crypto market shakes the core stock market—is becoming a reality, saying that investors are dumping stocks to buy Bitcoin at perceived bottoms.
During this rebound, Bitcoin demonstrated far stronger capital-attracting power than traditional safe-haven assets such as gold and silver. While gold and silver rose 2.77% and 5.68%, respectively, in a defensive move, Bitcoin’s surge of more than 10% suggests a rapid shift in market risk appetite from stocks to digital assets. This marks a clear departure from past patterns in which risk assets tended to rise together.
The S&P 500, a benchmark index of the New York stock market, had been hovering near record highs above the 7,000 level since early February, but has shown instability this week as key short-term support levels broke down. In particular, last Tuesday saw the steepest decline since October 2025, fueling assessments that the market has entered a correction phase. As capital outflows from equities into the crypto market accelerate, concerns are growing over dwindling liquidity in the stock market.
Experts are focusing on the fact that Bitcoin is now entering a full-fledged decoupling phase, separating from traditional markets amid macroeconomic uncertainty. Even as overall liquidity tightens, Bitcoin is increasingly being treated as a standalone asset class, triggering large-scale capital shifts. As data backs Jim Cramer’s hypothesis of stock selling followed by Bitcoin buying, the struggle for dominance between the two markets is expected to intensify further.
*Disclaimer: This article is for investment reference only, and no responsibility is taken for any losses incurred based on it. The content should be interpreted solely for informational purposes.*