The Great Decoupling: Bitcoin's Bold Move Away from Traditional Markets?

Welcome to Financial Fluency - a newsletter designed to boost your understanding of financial terms and provide you with investment ideas for long-term financial success.

In today’s newsletter:

• A Look at the Markets: Bitcoin & EURUSD

• The Great Decoupling: Bitcoin's Bold Move Away from Traditional Markets?

• Quote of the Day: Jupiter Zheng

• What I’m Watching: Swan Bitcoin

• Word of the Day: Decouple

• Whenever you are ready, here is how I can help you

A Look at the Markets: Bitcoin & EURUSD

Bitcoin

As I have said in previous newsletters, I have been waiting for a break above 92,000 USD. I see this as a bullish sign for Bitcoin. We are having a retest of this level which is also positive. We will see if this bullish move continues.

EURUSD - Trump 1 and Trump 2

I have posted this chart before because I am fascinated by this comparison of EURUSD in Trump’s first presidency with the first months of this second presidency. So far, it looks very similar.

The Great Decoupling: Bitcoin's Bold Move Away from Traditional Markets?

Following the Money: What Decoupling Signals for the Future

Financial news has recently featured discussions about 'Bitcoin decoupling.'

This specialised term can confuse both English learners and native speakers unfamiliar with financial vocabulary. Understanding this concept helps us understand possible important shifts in today's cryptocurrency markets.

Let's explore what decoupling means and why it matters for Bitcoin investors.

Understanding the Basics: What is Decoupling?

In everyday language, 'decouple' means to disconnect things that were previously joined together.

Train engineers use this term when they separate carriages from a locomotive, as in:

This physical example provides a helpful mental image for the financial concept we're discussing.

Decoupling in Business Contexts

Businesses strategically decouple operations to reduce dependency on single markets or suppliers.

Many global companies have recently decoupled their manufacturing from China, moving production to countries like India and Vietnam. This business practice helps firms manage geopolitical risks while maintaining production capabilities.

Apple is an example of this trend with its diversified manufacturing strategy.

Financial Decoupling Explained

Financial markets typically move in predictable patterns, with related assets following similar price trajectories.

Bitcoin has traditionally moved alongside high-risk technology stocks like those in the NASDAQ 100 index (Apple, Amazon, etc.), rising and falling together with this index. When analysts mention "Bitcoin decoupling," they are noting that this correlation may be weakening, suggesting Bitcoin may be developing its own independent market behaviour.

The chart below compares Bitcoin price to Gold, NASDAQ 100 and the S&P500 since Trump introduced tariffs on April 2nd 2025 (he named it Liberation Day).

Why Bitcoin Decoupling Matters

A sustained decoupling of Bitcoin from technology stocks would signal a significant shift in market perception about cryptocurrency's role.

If Bitcoin increases in value while the NASDAQ 100 drops, investors may begin viewing it more as a "store of value" similar to gold rather than as a speculative tech investment. This perception change could substantially increase Bitcoin's market capitalisation in the long-term and support proposals for institutional Bitcoin reserves.

Michael Saylor's belief in Bitcoin as a "treasury asset" gains credibility if this decoupling continues.

Is Bitcoin Really Decoupling from the NASDAQ 100?

Current market behaviour may be too volatile to draw definitive conclusions about Bitcoin's decoupling.

Political and economic uncertainty during the early days of Trump's second term could be creating temporary market divergences that might not persist. However, even short-term decoupling deserves close attention as it may signal the beginning of a more permanent change in Bitcoin's relationship with traditional markets.

Only time will tell whether this represents a genuine transformation or just a brief deviation from established patterns.

As always, none of this is financial advice. Everyone should invest according to their personal circumstances, risk tolerance and financial goals.

Quote of the Day: Jupiter Zheng

What I’m Watching: Swan Bitcoin

Word of the Day: Decouple

Decouple - verb - from "de" (meaning separation) + "couple" (to join together) - in general English, means to disconnect, separate, or disengage two connected items or systems from each other.

Context and Usage: Originally a mechanical term referring to the physical separation of connected components (especially in railways), decoupling has expanded into various technical fields. In finance and economics, it describes when correlated assets or markets begin to move independently. In business strategy, it refers to separating integrated operations or supply chains. In physics, it describes systems that cease to interact with each other.

Related Terms:

• Disconnect - to break a connection between two things

• Separate - to divide into distinct parts

• Disengage - to release from an attachment or connection

• Detach - to remove something from something else it was attached to

Bitcoin Context In cryptocurrency markets, analysts are watching Bitcoin's potential decoupling from traditional risk assets like the NASDAQ 100.

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Disclaimer:

This newsletter is for informational and educational purposes only and should not be construed as financial advice. The information contained herein is generic and does not take into account your individual financial circumstances. You should always consult with a qualified financial professional before making any investment or financial decisions.

Additionally, the authors and/or publishers of this newsletter may hold investments in securities or other financial instruments mentioned herein. These are included for illustrative purposes only and should not be taken as a recommendation to buy or sell such securities or financial instruments.