Benzinga - As the digital currency landscape evolves, Bitcoin (CRYPTO: BTC) is showing potential signs of a significant price movement, with market intelligence suggesting a possible break from its correlation with traditional stock markets.
What Happened: Market intelligence firm Santiment has indicated that Bitcoin might be on the verge of a significant price surge, potentially reaching the $100,000 mark, as its correlation with traditional stock markets appears to diminish. This insight was shared in a recent video update by Santiment’s marketing director, Brian Quinlivan, The Daily Hodl reported on Friday.
"After the bad news about inflation, this could be a sign that crypto is diverging away from equities again and carving their own path. And in most extended bull runs throughout the history of crypto for 15-plus years we have seen that they most often occur when there is little to no correlation with the S&P,” Quinlivan said.
The divergence between Bitcoin and the S&P 500 was particularly noticeable following the release of new inflation data. While equities were negatively impacted by the inflation concerns, Bitcoin demonstrated resilience, bouncing back above $70,000 after an initial drop.
See Also: What DOGE And SHIB Holders Can Learn From This Meme Coin Millionaire’s Trading Strategies
The observed divergence is a rare occurrence, as the crypto market has shown a strong correlation with equities for the past two years. The fresh inflation data that rattled the stock market did not seem to have a lasting negative effect on Bitcoin, hinting at a possible decoupling and an optimistic future for the cryptocurrency’s value.
Why It Matters: Bitcoin’s resilience in the face of inflation concerns aligns with its recent surge above the $70,000 threshold. This upward trend could be indicative of the cryptocurrency’s strengthening position independent of traditional financial markets.
In January, a crypto analyst predicted that Bitcoin could hit an all-time high in under six months, drawing parallels with the S&P 500’s performance. This forecast now seems more plausible with Bitcoin’s recent decoupling from the stock market.
Furthermore, the potential inclusion of MicroStrategy Inc., the largest corporate holder of Bitcoin, into the S&P 500 could have significant implications for Bitcoin’s integration into mainstream investment portfolios.
At the time of writing this article, Bitcoin was trading at $70,665.76, according to Benzinga Pro.
Read Next: Here’s How Much $1,000 In Bitcoin Will Be Worth If Cathie Wood’s BTC Prediction Is Correct
Image via Shutterstock
Engineered by Benzinga Neuro, Edited by
Pooja Rajkumari
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you.
Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.