Market intelligence platform Santiment believes Bitcoin (BTC) could soon reach $100,000 if the correlation between cryptocurrencies and stocks declines.
Brian Quinlivan, director of marketing at Santiment, said in a new video update that Bitcoin may be drifting away from the S&P 500, a historic bullish signal for the crypto king.
“After the bad news about inflation, this could be a sign that cryptocurrencies are once again moving away from equities and carving out their own path.” We have seen that most often occur when there is little or no correlation with the S&P.
IIt doesn't have to be the opposite like this, but if they're moving in their own way, we can continue to move forward and see the $80,000, $90,000, $100,000 that a lot of the bulls out there are mentioning often. This is a good sign that we can reach the dollar level. ”
Santiment noticed the disconnect between Bitcoin and stocks when new inflation data was released on Wednesday.
“Right now, if you look at Bitcoin versus the S&P and even gold, look at this huge divergence that just happened. [Wednesday]. The CPI report was released and caused some anxiety as the inflation rate was higher than experts expected, causing stock prices to sway, but it was actually part of Bitcoin's initial decline, which was just before the announcement. After that, people were kind of expecting this bad news could happen, and the bad news was confirmed, but it quickly rebounded and went back above $70,000 and is currently at about $70,600. .
The S&P is back to where it was a week ago. So this is one of those rare times where we see serious differences. We saw something similar happen in the opposite direction in late March, when Bitcoin fell, while the S&P remained flat. There are many reasons for this divergence, but for almost the past two years, we have found a fairly close correlation between cryptocurrencies and stocks. So this is very true. ”
At the time of writing, Bitcoin was trading at $70,444, up slightly over the past 24 hours.
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