Is Bitcoin Headed to $100K? Santiment’s Insights Offer Clues

According to insights from Santiment, there's a growing belief that Bitcoin could surge to $100,000 in the near future, provided its correlation with traditional stocks diminishes.

Brian Quinlivan, Santiment’s marketing director, suggests that Bitcoin’s recent divergence from the movements of the S&P 500 index signals a potentially bullish trend for the cryptocurrency market.

Quinlivan explains, “Following the recent concerns over inflation, the fact that Bitcoin is now showing signs of breaking away from the movements of traditional equities is an encouraging indicator.

Throughout the history of cryptocurrency, particularly during extended bullish periods spanning over 15 years, we’ve observed that significant price surges often coincide with periods of low correlation with mainstream financial indices such as the S&P 500.”

The divergence became particularly evident on Wednesday, coinciding with the release of fresh inflation data.

Despite a significant drop in traditional stock markets due to inflationary fears, Bitcoin demonstrated resilience by swiftly rebounding above the $70,000 mark.

Meanwhile, the S&P 500 index remained relatively stagnant, highlighting a rare deviation from the typically tight correlation between cryptocurrency and traditional equities.

This departure from the norm suggests a potential shift in market dynamics, with Bitcoin carving out its independent trajectory, a phenomenon not seen in recent years due to the close relationship between crypto and equities.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.