Traditional financial indicators suggest a Bitcoin rebound: Beta vs Quality indicators continue to rise

Source: BlockMedia Original Title: Indicators Moved First… Wall Street Predicts Bitcoin Rally as ‘Quality over Beta’ Rebounds Original Link:

Market Indicators Release Positive Signals

As Bitcoin attempts a rebound after a period of correction, a particular indicator from the traditional financial markets has drawn attention. This is the “Pure Vol vs Pure Profitability,” or the “Beta vs Quality” indicator. The indicator has shown a sustained rebound trend, signaling a recovery in risk asset investment sentiment and the possibility of further upside for Bitcoin.

Indicator Meaning Explained

This indicator is used in the stock market to compare the performance difference between high-volatility, high-risk stocks (Beta) and quality stocks with stable profitability (Quality). When the market is risk-averse, Quality outperforms; when risk appetite rises, Beta stocks perform better. In other words, an uptick in this indicator means that investor sentiment is shifting toward risk assets.

Recent Trends and Correlation

According to technical analysis, this indicator has been on the rise for 10 out of the past 11 days and is retesting its highs. This suggests that risk appetite is spreading in the traditional markets. This shift aligns with Bitcoin’s price seeking support, further reinforcing the potential for Bitcoin to rise.

In the related chart, the white line represents the “Pure Vol vs Quality” indicator, which showed a clear downtrend after mid-2025 but rebounded sharply at the beginning of December. Meanwhile, the yellow line representing Bitcoin’s price is seeking a directional reversal near its lows.

Deeper Economic Implications

It’s worth noting that the Pure Vol vs Quality indicator has shown a high correlation with the Purchasing Managers Index (PMI) over the long term. This means the indicator not only reflects internal stock market trends but also expectations for a real economic recovery.

Market experts generally believe that these trends in traditional asset markets are having direct or indirect effects on the digital asset market. Especially recently, Bitcoin has been increasingly reacting to the movements of risk assets across the entire financial market, so changes in this indicator can serve as a leading signal.

Current Bitcoin Performance

According to data, Bitcoin is confirming support near $93,000 and is continuing a technical rebound.