Bitcoin and the stock market have formed a close correlation in recent weeks, but this is now showing some signs of breaking as BTC trades sideways while most equities begin picking up some momentum.

The stock market has been seeing an intense recovery, and its momentum appears to be picking up once again as many states and cities that were previously on lockdown begin opening up.

One indicator of the market’s newfound momentum can be seen while looking towards the number of publicly traded companies that are seeing their stock prices hit fresh all-time highs.

On Friday, 59 common stocks on the NYSE were able to set fresh highs. This is still a far cry from the numbers seen before March, but it does show that the traditional markets are making a comeback.

However, despite the recent correlation between Bitcoin and the traditional markets, it remains unlikely that this will be enough to propel the cryptocurrency to fresh highs.

The past couple of months have been rather lackluster for both Bitcoin and the traditional markets.

Investors have been mostly sitting on their hands as they await more data regarding just how far-reaching the pandemic’s damages were to the US and global economy.

The stock market appears to be once against starting to catch some further momentum, however, as employment data signals that the economy is seeing a “v-shaped” recovery despite the pandemic still raging throughout the world.

As NewsBTC reported yesterday, the latest set of Non-Farm Employment data elucidated that 4.8 million jobs were created last month. This was well above what economists had anticipated and shows that companies are going on hiring sprees as things start going back to normal.

Even Bitcoin posted a slight, albeit fleeting, reaction to this news.

This accelerated the stock market’s momentum, and on Friday alone, 59 common stocks were able to set fresh all-time highs – with this being the highest number seen since the downturn in late-February.

One market analyst spoke about this in a recent tweet, saying:

“Would you look at that, the number of common stocks making new highs for NYSE increased Friday. To 59, which isn’t much but is the most since we fell off the cliff in March.”

Between February and June, Bitcoin and the equities market remained closely correlated to one another.

This correlation, however, is beginning to show some signs of breaking as the stock market recovers while Bitcoin continues trading sideways around $9,100, a trend that can be clearly seen on the below chart from Skew.

If this trend persists, Bitcoin may not be able to catch the upwards tailwind created by a stock market rally.

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