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Bitcoin's Correlation to S&P 500 Plunges as BTC Smashes Index by Weekly Returns

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Sat, 9/03/2024 - 9:39
Bitcoin's Correlation to S&P 500 Plunges as BTC Smashes Index by Weekly Returns
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Santiment on-chain data aggregator has published a tweet to say the two largest cryptocurrencies have greatly surpassed the S&P 500 index on weekly returns.

It happened after Bitcoin soared to a new epic high of $70,199 on the Coinbase exchange and Ethereum also staged a massive rise, almost hitting $3,400.

BTC and ETH beat S&P 500, decoupling from it

Santiment has tweeted that Bitcoin and Ethereum have outperformed S&P 500 this week by returns significantly: BTC showed +10%, Ethereum printed an increase of +14.7%, while the aforementioned equities index showed only a +0.5% surge.

The analytics team has stressed that Bitcoin and Ethereum are currently facing “little to no correlation with equities,” therefore traders hope that this bullish trend will continue.

While Bitcoin has hit a new historic peak, Santiment continues, the percentage of social media discussions about BTC remains relatively high at the 27.5% level at the moment. However, this value is far from the euphoric levels observed earlier, when Bitcoin surpassed the $60,000 mark more than a week ago. Santiment concluded that this is a good sign as FOMO (fear of missing out) and greed are always top signals.

Another positive sign for Bitcoin mentioned by Santiment is that a lot of previously inactive Bitcoin wallets are starting to move their BTC back into circulation quickly. This is also typical for nearly every bull market, the tweet points out. This indicates that Bitcoin is likely to continue with its upsurge until BTC is again captured by crown euphoria and coin stagnancy hits the flagship cryptocurrency once again.

Related

Next Bitcoin market top timing revealed by analyst

Popular on X cryptocurrency analyst and trader Ali Martinez has shared how long Bitcoin historically takes to reach a new market top after establishing a new all-time high.

Martinez believes that Bitcoin usually needs approximately a year or a little less to reach that point — from eight to eleven months, to be precise. Therefore, per his analysis, the next Bitcoin market top will be reached at some point between November 2024 and February 2025.

After hitting the ATH at $70,200 on Friday, Bitcoin has bounced back by 2.58% and is changing hands at $68,400 at the time of this writing.

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