Bitcoin Breaks Away From MAG7 After October 10 Liquidation Shock

The recent X post of Crypto Rover attracts attention to a new and shocking feature of the market Bitcoin has lost the Magnificent Seven (MAG7) tech stocks. There was a definite break in his chart, which commenced after the October 10 liquidation incident. The unusual price action of Bitcoin appears to be monitored closely by traders who have been trading early around the post. The message at Rover is, Bitcoin has lost its connection with the MAG7 stocks heavily after the liquidation event that occurred on October 10, which again brought up the debate on whether Bitcoin has entered a whole new macro phase or not.

Bitcoin vs MAG7: Chart Indicates The Uptrend of Bitcoin.

The graph is an equivalent of BTC/USD against Roundhill Magnificent Seven ETF (MAGS) between August 2024 and early 2026 forecast. The liquidation event that occurred in October 10 is denoted by a yellow line and it separates the chart into two periods. Prior to the event, BTC and MAG7 followed each other almost in harmony. Following the event, Bitcoin increased upwards whereas MAG7 fell downwards. Bitcoin goes up to approximately 128,000 in value in early 2026 forecasts compared to about $60,000 in August 2024. In the meantime, MAG7 line decreases to approximately below 55 at the end of 2025. The correlation breakage is too gross to be overlooked through the dual-axis layout.

October 10: The Liquidation That Changed the Market Structure

The liquidation event of October 10, 2025 resulted in a historic liquidation of 19 billion the biggest leveraged liquidation in crypto history. It removed over-leveraged traders in the market and re-price open interest on major exchanges. After excess leverage had cleared, Bitcoin rose in a more conducive and tranquil setting. The situation was much different with MAG7 stocks, which were burdened by declining profits, regulatory constraints, and overvalued shares. The capacity of Bitcoin to recover following such a large-scale liquidation proved to be one of the best indicators that the market structure of Bitcoin was going to be transformed significantly.

The MAG7 Correlation Failure

Over years, the U.S. tech momentum was seized by the Magnificent Seven, comprising of Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla. The overall impact usually pushed risk assets such as Bitcoin the same way. However, by the end of 2025, technology started losing dominance. Still high interest rates strained valuations. In the key platforms, AI revenue growth decelerated. The antitrust actions were strengthened by regulators, and hardware and EV margins narrowed. Bitcoin on the other hand experienced strength due to ETF inflow, corporate treasury build up, post-halving supply squeeze, and increased geopolitical demand. These conflicting forces directed the two asset classes in a different direction.

Bitcoin gains a New Macro Identity

The fact that the liquidation event saw Bitcoin go above the 100,000 mark was more than a technical breakout. It created a psychological change in the approaches of institutions towards BTC. By not perceiving it as another tech-like risk asset, investors started to embrace it as a scarcity-based hedge as in gold. The strength of Bitcoin was in contrast to the cyclical pressure of tech stocks, which were weak. The chart presented by Rover supports the notion that the identity of Bitcoin has developed. The previous correlation models, which characterized the year 2023 and 2024, are no more.

Market Analysts Project More Divergence

The analysts believe that the split between Bitcoin and MAG7 will persist by 2026. Bitcoin has had an upper hand in supply as the post-halving acceleration, and the tech stocks have been experiencing a cool-down in valuation. According to the projections presented by Rover, it is estimated that Bitcoin will be soaring towards the higher ranges of $120,000 to 130,000 although MAG7 will move sideways or down. This view confirms the popular assumption that the new macro behavior of Bitcoin is not a temporary one but rather a structural one.