According to Santiment, Bitcoin price will reach $100,000 as the correlation between crypto and stocks weakens

Market intelligence platform Santiment believes that Bitcoin (BTC) could soon reach $100,000 as the correlation between crypto and stocks decreases.

In a new video update, Santiment marketing director Brian Quinlivan says Bitcoin may diverge from the S&P 500, a historic bullish signal for the crypto king.

“After the bad news about inflation, this could be a sign that cryptocurrencies are moving away from stocks again and going their own way.” And in most of the extended bull runs in cryptocurrency history for more than 15 years, we have seen that they most often occur when there is little or no correlation with the S&P.

It doesn't have to be so opposite, but if they move in their own way, that's a good sign that we'll continue to move forward and reach the $80,000, $90,000, and $100,000 levels often mentioned by many bulls out there can. ”

Santiment noted the divergence between Bitcoin and stocks on Wednesday as new inflation data was released.

“Now when we look at comparing Bitcoin to the S&P and even gold, look at this big divergence that just occurred [Wednesday]. When the CPI report came out, stock prices faltered over fears that inflation was higher than experts expected, but after an initial drop in Bitcoin that actually occurred shortly before the announcement, this was a way of people anticipating it Bad news could happen, the bad news was confirmed, but the price quickly recovered and rose straight back above $70,000 to the current level of around $70,600.

The S&P is back to the level it was about a week ago. So this is one of the rare cases where we see a serious divergence. We saw something similar in the opposite direction at the end of March when Bitcoin fell and the S&P remained at the same level during this time. There are many reasons for these differences, but essentially over the last two years we have seen a fairly close correlation between crypto and stocks. So that’s very applicable.”

Bitcoin is trading at $70,444 at the time of writing, up slightly in the last 24 hours.

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