For now, there’s always going to be a correlation between Bitcoin and fiat. That’s because Bitcoin isn’t a legal currency yet, so people still need fiat to buy it, and they sell it back to fiat when they want profit.

More people buying Bitcoin means more fiat being thrown into the market. That’s why the two are still closely tied together.

And honestly, I think this setup will stick around for a while as no country has fully committed to making Bitcoin a legal currency just yet.

Because we still have to realize that bitcoin is still one of the future assets that can indeed be used as an investment or indirectly it can be a hedge which indirectly can be secondary in terms of needs but for fiat until now we still can't or maybe can't let go of it from our lives because it will be considered primary considering that we won't be able to do much if we don't have fiat for now.

Being in bitcoin doesn't mean we put aside fiat but we are only trying to take advantage of this so that our lives are still fulfilled for now with fiat and our future is expected to be guaranteed with investment in bitcoin so there is no need to let go of one if we can still use both.
Even though there may be some people who will debate this but for me and the concept of life that I am doing now as long as it can help the process of life then everything can be used so that in the end holding bitcoin and fiat without letting go of one or without hating one is still a rational thing that can be done.

Yes, but also no. Your chart shows a very short time period, to make it more proper it should show at least the last 10 years. Even factoring that it, the total amount of time is still pretty short to be certain of correlations.

Things are not that simple. If they were, why not just print 1 billion $ for everyone so they can all be rich. Right? Printing money devalues everything. What matters is where most of the money is going to and whether you hold that asset or if you hold the currency that is being printed.

That is fair way of looking that how Bitcoin and regular money work together. And that is right that we still need regular money for everyday things.  We know that there is limited amount of Bitcoin and it is decentralised so many people think that it will grow with passage of time.
And Idea of using both types of money makes much sense for many people. We can use regular money for daily need and put some money into Bitcoin for future. This way we are not putting all our eggs in one basket. By the way people think differently about cryptocurrencies and they have different plans.

As awareness of Bitcoin increases as it grows, people will try to find alternative currencies to protect their wealth when inflation occurs. Choosing Bitcoin does not mean setting aside the function of Fiat, Inflation which tends to have a negative impact on the value of fiat makes investors look for alternatives such as Bitcoin. Both currencies have their respective roles, you must be wise in managing your finances to protect value. Bitcoin high volatility makes it very risky, but on the other hand offers great profit potential.

According to IMF, the global GDP of the world economy is 115 trillion while the total crypto market capitalization is only 3 trillion and according to another survey, about 7% of the global population is involved in the crypto market. That means if bitcoin and crypto suddenly disappeared, it would impact the economy but not as big as you might think. Although bitcoin is becoming more and more popular, it is not as globally popular as we think, many people still do not need it and still have a stable life.

Of course we are aware. Bitcoin still acts like a stock/asset at this point. Bitcoin might get even bigger than gold and it still wouldn’t change anything.

The reason is because, people borrow fiat, people don’t borrow btc. Fiat is every where. Infiltrated to every business, every accounting, every trade.

Bitcoin is nearly non-existent in these areas.

That’s why FIAT is still the king, no matter how fat it gets.

That's the difference though. The market cap is just too small for the global GDP. Not even a as huge in the Forex market but I think we are about to get to be bigger  as they are. Just think about Bitcoin added to the S&P 500, which sooner most investors in stock market will also have BTC in their portfolio.

I still think there will be no decoupling to fiat but its going to get bigger still because of the stablecoin adoption.

This might be the reason why a reduction of interest rates in some major economies usually leads to an increase in the price of Bitcoin. When interest rates are low, money goes into circulation since borrowing becomes cheaper.

Trump also brought much instability to the market with his tariff policies. Using Bitcoin for his campaign increased awareness among nations states, but it's also had its negative effects.

I don't think so because these two things are not free for each other because whoever has money will have Bitcoin and whoever has Bitcoin will also have money. Therefore, I don't see any special reason between them because if Bitcoin goes up and down then money also goes up and down due to their circulation.

Many people have become serious about it and that is why they are also paying attention to it. But in the coming time it seem difficult to live without Bitcoin, due to which we can also consider Bitcoin as a part of it and without FIAT everything is lack in life because it is effective in everything.