The price of Bitcoin (BTC) is showcasing a very troubling selloff, one that has triggered a rare correlation break with the S&P 500 Index. Despite being a traditional finance stock market performance tracker, the growth trend of S&P and Bitcoin has stayed similar until now.
The Bitcoin and S&P 500 Trend
According to data insights from the crypto analytics platform Santiment, the mild recovery recorded in Bitcoin this week has not changed its bearish trends. Santiment noted that the bearish trend of BTC came at a time when the S&P 500 and US equities continues to flourish.
According to latest market data, the price of BTC has inked a 0.7% surge in 24 hours to $58,064.45. While this is low comparatively, the S&P 500 has added 50.37% to its value, pegged at 5,634.91 atop a 0.90% surge. When expanded over the past week, BTC is up marginally by 2.97% while the S&P 500 is up 1.21%.
📊 Despite a mild recovery to end the week, Bitcoin’s recent dip came as the S&P 500 and equities continued to flourish. This has been a rare sight for the past 3 years, with most of crypto’s runs coming in tandem. BTC lagging behind suggests an eventual bullish catch up period. pic.twitter.com/q4FnwmZMpK
— Santiment (@santimentfeed) July 12, 2024
Per Santiment data, on the 5-weeks timeline, BTC is performing woefully relative to the S&P 500. In this timeframe, the coin is down by 19.4% with the S&P 500 growing by 5.4%. This confirms the diverging correlation, potential pushing both assets on a different growth path.
While it might come off as a concern, Santiment pointed out that this is a positive twist for BTC. This is because the price of the coin records its biggest gains whenever it maintains little to no correlation with equities. The breakout expectation of Bitcoin as projected by Santiment comes with no specific timeline.
When Return To ATH?
The price of BTC topped the All-Time High (ATH) of $73,750.07 in mid-March. Since then, the coin has traded lower as spot Bitcoin ETF realities became priced into the market.
With Grayscale loosing funds through consistent outflow, it is counterbalancing the ETF inflow from other issuers. The expectations of spot Ethereum ETF products has also failed to reboot sentiment, further elongating the revival of Bitcoin. Overall, the rebound of Bitcoin might see the coin form support at $60,000 to start with.
Optimistic traders projects the end of Q3 for Bitcoin to return to its ATH.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
