Market intelligence platform Santiment believes that Bitcoin (BTC) could soon reach $100,000 if the correlation between cryptocurrencies and stocks declines.
In a new video update, Brian Quinlivan, director of marketing at Santiment, said bitcoin may deviate from the S&P 500, a historically bullish signal for the cryptocurrency king.
“After the bad news about inflation, this could be a sign that cryptocurrencies are moving away from stocks again and making their own way. In most of the bull runs spanning the 15+ year history of cryptocurrencies, we have seen them happen mostly when there is little or no correlation to an index.” S&P.
IIt doesn't have to be the other way around, but if they are moving in their own ways – a good sign that we can continue forward, we have reached the $80,000, $90,000 and $100,000 levels that many bulls mention so often. ”
Santiment noted the divergence between Bitcoin and stocks on Wednesday following the release of new inflation data.
“Now looking at the comparison between Bitcoin versus the S&P and even gold, look at this huge difference that just happened [Wednesday]. After the CPI report came out, stocks were shaken as a result of some lingering concerns about inflation being higher than experts expected, but after the initial drop in Bitcoin, which was actually right before the announcement, that was kind of people anticipating that bad news might happen, and it was confirmed. Bad news, but it quickly rebounded and went back above $70,000 to where it is now at around $70,600.
The S&P is back to where it was a week or so ago. So this is one of the rare times where we see a serious difference. We saw something similar in reverse in late March when Bitcoin fell and the S&P remained flat during that period. There are a lot of reasons for these differences, but over the past couple of years we have seen a very close correlation between cryptocurrencies and stocks. So this is very viable.”
Bitcoin is trading at $70,444 at the time of writing, up slightly over the past 24 hours.
Never miss an opportunity – sign up to get email alerts delivered directly to your inbox
Check price action
Follow us TwitterAnd Facebook and Telegram
Browse Hodl's daily mix
 
Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should conduct due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated image: DALE3
