Bitcoin decouples from dollar and stocks before Fed decision

  • Bitcoin market stopped tracking the dollar index and U.S. stocks before Wednesday’s Fed decision.
  • +0.08 was Bitcoin’s short-window dollar-index correlation, versus -0.54 over 30 days.
  • Clarity Act failed a key Senate procedural vote on Tuesday, according to CoinDesk.

Bitcoin’s market relationships with the dollar index, U.S. equities and gold weakened ahead of Wednesday’s Federal Reserve interest-rate decision. CoinMarketCap data showed its short-window correlation with the dollar index falling to +0.08 from -0.54 over 30 days, while correlations with the S&P 500, Nasdaq and gold also declined. CoinMarketCap research head Alice Liu attributed the decoupling to traders’ focus on the Clarity Act after it failed a key procedural vote in the Senate on Tuesday, diverting attention from macroeconomic factors.

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