Connect with us
Active Currencies 12952
Market Cap $2,375,905,792,245.40
Bitcoin Share 50.52%
24h Market Cap Change $1.87

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

2min Read
Bitcoin [BTC] and S&P 500 part ways, where now for the king coin?

Share this article



  • 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.


Share

Saman is a News Editor at AMBCrypto. Her background in History and English expanded on her knack for editing and presenting all sides of a story without bias. With a strong will to learn, Saman is always up for exploring unknown territory, and crypto, with its ever-changing landscape, offers just that.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.