Bitcoin is now front-running the Fed rather than reacting to it. ETFs are the cause
CoinDesk
Bitcoin has shifted from reacting to Federal Reserve policy to leading it, a change driven by the influence of spot ETFs.Summary
A report from Binance Research indicates that Bitcoin's historical correlation with global central bank policy has reversed since 2024. Previously a lagging asset that reacted to interest rate changes, Bitcoin now appears to act as a leading indicator. This structural shift is attributed to the approval of spot Bitcoin ETFs, which have increased institutional participation and allowed firms to price in policy expectations well in advance. Consequently, crypto-native factors and institutional flows are becoming more significant drivers of Bitcoin's price than traditional monetary easing cycles.
(Source：CoinDesk)