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Bitcoin [BTC] and S&P 500 part ways, where now for the king coin?



Bitcoin [BTC] and S&P 500 part ways, where now for the king coin?
Source: Unsplash

  • Bitcoin decoupled from S&P 500 for the first time after the FTX debacle.
  • Sentiment for Bitcoin improved, but traders took short positions.

Bitcoin [BTC] had been leading the charge of the bullish sentiment surrounding crypto over the past few days. Due to its positive rally over the past few weeks, its correlation with the S&P 500 declined. Moreover, there has always been talk about how Bitcoin could act as an inflation hedge. This argument gained more credence as BTC decoupled from S&P 500.

How much are 1,10,100 BTCs worth today?

As BTC’s prices surged, the king coin’s overall sentiment also improved.

According to data provided by Santiment, it was observed that the weighted sentiment for Bitcoin increased. This implied that people from the crypto community had more positive than negative things to say about Bitcoin.

Due to the positive sentiment, Bitcoin’s overall network activity increased, as highlighted by the rise in the network’s daily active addresses. Along with that, BTC’s velocity rose as well, which indicated a surge in activity.

Source: Santiment

It wasn’t just the number of transactions that had increased. The mean size of each transaction also grew, as did the fee collected by miners. This rising miner revenue reduced selling pressure.

Source: glassnode

The tides may turn for Bitcoin

However, Bitcoin’s selling pressure could increase in the future. As addresses in loss continued to decline, the incentive for selling BTC grew. This could be one reason why trader sentiment fell. Additionally, according to data provided by Coinglass, the number of short positions taken against BTC increased.

Source: Coinglass

Read Bitcoin’s [BTC] Price Prediction 2023-2024

Another cause of concern for BTC would be the rise in exchange reserves. According to CryptoQuant’s data, Exchange Reserves have grown by 0.67% in the last week. A high exchange reserve could lead to more selling pressure.

Overall, even though BTC decoupled from the S&P, there were some factors that could reverse its press time rally. Only time will tell if Bitcoin outperforms S&P 500.

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Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

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Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.