Bitcoin and the broader crypto market are rising despite a downward trend in stock markets, especially technology stocks, indicating a breakdown in correlation between the two.

The flagship cryptocurrency is up more than 4% in the past few hours to $66,377 at press time, based on data from CryptoSlate.

Meanwhile, other top tokens such as Ethereum and Solana were up 2.24% and 7.8% respectively - ETH was trading at $3,482 and SOL at $170 at press time.

Technology correlation

The crypto market recorded a significant surge with the start of trading in New York, rising to new monthly highs despite the simultaneous decline of most stocks. This is a noticeable break in the correlation between crypto and technology stocks in particular, which have largely moved in tandem since around 2020.

The correlation has often been linked to the rise in popularity among institutional investors who view Bitcoin and other cryptocurrencies through the same lens as tech stocks, resulting in synchronized trading patterns.

Research has shown varying degrees of correlation between Bitcoin and technology stocks. For example, during certain periods the correlation coefficient between Bitcoin and the NASDAQ-100 index (which is a high-tech index) increased, indicating a stronger relationship.

Despite the growing correlation, there are still times when Bitcoin and tech stocks diverge due to unique events affecting the cryptocurrency market, such as regulatory news or significant developments in blockchain technology.

Uptrend in the market

Bitcoin's latest rally is being driven by several factors, the most notable of which are rumors that former President Donald Trump plans to announce plans to make BTC a strategic reserve asset for the US.

Trump has fully embraced that position in recent weeks as the issue becomes increasingly important to many voters. He has broad support among tech and crypto industry leaders who believe his policies will be more favorable to both sectors.

Strong support for the currently favored presidential candidate has given Bitcoin new momentum after it fell to a multi-month low amid recent selling in Germany.

Meanwhile, Solana is ahead of most of the top 10 tokens - SOL's momentum is primarily driven by wider adoption and the expectation that it will be the next token to achieve ETF status. Some firms have already applied for the Solana spot ETF.