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Bitcoin price is stalling versus U.S. equities as risk capital rotates into tech and altcoins. A dovish FOMC outlook and ETF interest are bolstering Nasdaq and SOL, leaving Bitcoin underperforming while investors chase higher short-term returns in equities and selected altcoins.
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Bitcoin vs Nasdaq: negative correlation signals rotation into equities
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Altcoins (Solana, Ethereum) and Institutional treasuries are capturing flows, pressuring BTC performance.
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On-chain data (CryptoQuant) and market metrics show TOTAL2 at $1.74T and SOL/BTC up 10.5% month-over-month.
Bitcoin price lags Nasdaq amid risk rotation; read latest on ETF pulls, Solana momentum, and FOMC implications. Learn what traders should watch next.
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What is causing Bitcoin price to lag the Nasdaq?
Bitcoin price is lagging Nasdaq largely because risk capital is rotating into equities and high-performing altcoins ahead of a likely Federal Reserve rate cut. Market participants are front-running dovish guidance, moving funds into ETFs, treasuries, and select tokens that have outperformed BTC this cycle.
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How significant is the BTC–Nasdaq correlation shift?
On-chain and market data show the BTC–Nasdaq correlation flipping to -0.14 — the weakest reading since September 2024. This negative correlation indicates a measurable decoupling as the S&P500 and Nasdaq rally: S&P500 is ~32% off the April low and Nasdaq has rallied ~50% to a new ATH, while BTC declined ~38% on price charts in the same window.

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Source: CryptoQuant (chart)
Why are altcoins outpacing Bitcoin right now?
Capital is flowing into altcoins as investors hunt higher short-term returns. TOTAL2 (ex-BTC market cap) recently reached $1.74 trillion, representing 45.8% market share. The Altcoin Season Index moved to 80, signaling broad alt strength.
Solana stands out: the SOL/BTC ratio rose 10.5% in one month, with SOL returning ~3x versus BTC’s ~6% ROI in the same period. Institutional activity is visible too — 16 treasuries now hold roughly 10.29 million SOL, keeping capital allocated to alt momentum.

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Source: TradingView (SOL/BTC)
How could the FOMC decision affect Bitcoin price?
Markets price a high probability of a 400–425 bps easing cycle, which traders see as bullish for risk assets. A dovish Fed or forward guidance could redirect capital back into Bitcoin, but the initial reaction may favor equities and altcoin ETFs expected later this year.
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David Hernandez, 21Shares (quoted via press coverage), notes that a rate cut could push Bitcoin toward $118K–$120K, but also opens room for tokens like Solana and XRP to attract fresh inflows when their ETFs debut.
How to interpret BTC–Nasdaq decoupling?
- Monitor correlation metrics: falling BTC–Nasdaq correlation signals rotation; act when correlation stabilizes.
- Watch institutional treasury disclosures and ETF filings for where capital is allocated.
- Track on-chain indicators (exchange flows, whale wallets) and macro signals (Fed guidance, treasury yields).
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Frequently Asked Questions
Will a Fed rate cut immediately boost Bitcoin price?
A Fed rate cut typically improves risk appetite, but initial inflows can favor equities and newly listed ETFs. Bitcoin may benefit, but timing and magnitude depend on liquidity and whether institutional flows return to BTC or remain in altcoins and equities.
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How do altcoin treasuries affect BTC’s market share?
When treasury balance sheets hold significant altcoin allocations (e.g., millions of SOL), those coins see reduced sell pressure and increased institutional support, which can tilt market share away from Bitcoin until allocations rebalance.
Key Takeaways
- Market rotation: Risk capital is favoring Nasdaq and altcoins, pressuring Bitcoin price in the short term.
- On-chain signals: TOTAL2 and SOL/BTC ratios confirm alt momentum; institutional treasuries are a key driver.
- Event risk: FOMC guidance and upcoming ETF flows will be the main catalysts to watch next.
Conclusion
Bitcoin price is currently underperforming U.S. equities as investors chase higher short-term returns in Nasdaq and altcoins. Data from CryptoQuant and TradingView, plus institutional moves, support the view that capital is rotating. Monitor the FOMC, ETF entries, and on-chain flows to gauge whether BTC will reclaim leadership or remain sidelined in this cycle.
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Published: 2025-09-16 | Updated: 2025-09-16 | Author: COINOTAG
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