Bitcoin Posts Strongest Weekly Performance Since September 2025 as Market Correlation Shifts

Bitcoin is on track for its strongest weekly performance since September 2025, rising roughly 8.5% and trading above $71k. The latest move comes as the digital asset begins to diverge from traditional markets, including technology stocks, gold and broader U.S. equities.

Since the escalation of tensions in the Middle East around two weeks ago, Bitcoin has gained approximately 13%. During the same period, the iShares Expanded Tech Software Sector ETF has increased only modestly, while gold prices have fallen and major equity markets have recorded losses. The shift suggests Bitcoin may be temporarily weakening its correlation with technology-focused assets.

Institutional Inflows Return Through Spot Bitcoin ETFs

Institutional demand also appears to be gradually returning. U.S. spot Bitcoin exchange traded funds have attracted around $1.3 billion in net inflows during March, which could mark the first positive monthly flow since October.

Despite the price recovery, broader market sentiment remains cautious. Funding rates in perpetual futures markets continue to stay negative, indicating strong bearish positioning among traders even as the asset’s price moves higher.

Analysts say the recent divergence may reflect Bitcoin’s evolving role in global markets. Because it trades continuously, the cryptocurrency often reacts to geopolitical developments faster than traditional assets, potentially serving as an early signal for broader market sentiment.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.