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Bitcoin is trading off of its 24-hour lows today, which has led the aggregated crypto markets to similarly climb higher. This move marked a slightly bullish response to the recent selling pressure that the markets have encountered.

Importantly, analysts are now noting that the recent surge also closely coincided with “less-dovish than expected” data from the European Central Bank (ECB), which is now on the verge of cutting interest rates – a potential event that has caused the Euro to plunge to two-year lows.

Bitcoin Climbs Nearly 4% as Traditional Markets Plunge

At the time of writing, Bitcoin is trading up over 3.5% at its current price of $10,015, which is up slightly from its daily lows of $9,600, which were set yesterday.

Earlier today, the ECB hinted to the possibility that they would be cutting interest rates for the first time in several years, which came about after a slightly hawkish press conference that has put some fear into the hearts of many investors.

Almost instantly, this news sent the global equity markets reeling down, with the S&P 500 plunging 0.5%, while the Euro plunged after climbing earlier today.

This negative news clearly had zero impact on Bitcoin, which is rapidly decreasing its correlation with the traditional markets, which adds support to the widespread “digital Gold” and “Gold 2.0” narrative that is pervasive in the crypto markets.

Will Algorithms Increasingly Treat BTC as an Uncorrelated Asset?

Although individual investors may increasingly turn to Bitcoin as an asset that moves inversely to the traditional markets, in order for this inverse correlation to be truly set in stone, trading algorithms must begin turning to the crypto when hawkish news or data is revealed.

Travis Kling, who runs the Ikigai fund, spoke about this in a recent tweet, saying:

“BTC vs Gold in the hours leading up to, during & after the ECB’s “less dovish than hoped” announcement today. This is how BTC morphs from being a risk asset to a safe haven. Watch how humans and algos treat it relative to traditional asset classes during big events like this.”

Although only time will tell as to whether or not Bitcoin garners adoption as either a currency or as a safe haven asset, it does appear that its price action is entirely separate from that of the global economy, which could prove to be a positive thing should economic instability continue to increase.