I noticed an interesting discussion around Bitcoin — many compare it to tech stocks, especially after its correlation with the S&P 500 and Nasdaq increased. But that's not entirely fair, and here’s why.

Yes, the correlation is indeed around 0.5, but that doesn’t mean Bitcoin trades like a typical coin stock. Statistics show that stocks explain only a quarter of Bitcoin’s price movements. The remaining 75% are driven by very different factors: flows into Bitcoin funds, derivative positions, network adoption, regulatory events. In other words, these are two different games; they just sometimes synchronize due to macro conditions.

Greg Cipolaro from NYDIG explained this well in his note. He says that the current alignment of prices is more a reflection of liquidity and risk appetite than a structural merging of assets. And Bitcoin still functions as a portfolio diversification tool despite the increased correlation.

What’s also interesting is that the debates around Bitcoin have evolved. Previously, people argued whether it would survive at all. Now, the question is whether it can become a reserve asset for central banks. Palihapitiya and Dalio question this, citing volatility and regulatory risks. But Cipolaro believes that’s not critical for long-term growth.

Because Bitcoin grows not thanks to central bank adoption but because of its distributed network and acceptance at the individual user level. The network has expanded from retail investors to family offices, asset managers, and exchange-traded funds. This differs from most financial innovations, which typically start with institutional capital.

Bitcoin’s value is driven by its global network, political neutrality, and technical properties that ensure censorship-resistant transfer of value. This is the foundation it stands on, regardless of what major investors think about it.

By the way, I noticed that SpaceX holds about 8,300 Bitcoin in an account with a major crypto infrastructure provider, valued at roughly $603 million. This is despite the company facing losses in 2025. It’s interesting that even during tough periods, companies continue to hold positions in Bitcoin — perhaps confirming its role as a long-term store of value.

The current Bitcoin price is around $73,500. In my view, the debate about whether Bitcoin trades like a tech coin stock misses the point a bit. Yes, correlation sometimes increases, but that doesn’t change the asset’s fundamental properties. It remains one of the best tools for portfolio diversification if you understand what you’re buying.