Bitcoin Could Reach $100,000 with Weakening Correlation Between Crypto and Stocks
Market intelligence platform Santiment suggests that Bitcoin (BTC) has the potential to soar to $100,000 if the correlation between the cryptocurrency market and traditional stocks decreases.
Bitcoin Diverging from S&P 500
- Brian Quinlivan, Santiment’s director of marketing, highlights a historic bullish signal for Bitcoin as it appears to be diverging from the S&P 500.
Quinlivan explains that the recent negative news about inflation could indicate that the cryptocurrency market is steering away from the equities market, paving the way for independent growth. He points out that prolonged bullish crypto trends typically coincide with minimal correlation to the S&P 500.
- The correlation doesn’t have to be completely inverse, but a divergence in their movements is a positive indicator for potential price levels of $80,000, $90,000, and even $100,000, as predicted by many bullish investors.
Bitcoin’s Performance Amid Inflation Data
- Santiment observed a clear divergence between Bitcoin, equities, and gold following the release of fresh inflation data.
- Despite an initial dip in Bitcoin’s price before the inflation announcement, the cryptocurrency rebounded swiftly to surpass $70,000 level while the S&P 500 retraced to levels seen a week earlier.
This significant deviation between crypto and traditional markets is a rare occurrence, given the usual tight correlation observed in the past two years.
Current State of Bitcoin
- Bitcoin is currently trading at $70,444, exhibiting a slight uptrend in the last 24 hours.
Hot Take: Embracing Independence for Bitcoin Surge
Santiment’s analysis hints at the possibility of Bitcoin reaching $100,000 if it continues to distance itself from the performance of traditional stocks and assets. This divergence could fuel the cryptocurrency’s independent growth and potentially unlock new price milestones, offering an appealing prospect for investors eyeing substantial returns.
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