Market analysts at Santiment predict that Bitcoin (BTC) could surge to $100,000 if the correlation between cryptocurrencies and stocks weakens.
Divergence from S&P 500
Brian Quinlivan, Santiment’s marketing director, observes that Bitcoin is potentially diverging from the S&P 500 index. This divergence has historically been a bullish signal for Bitcoin.
“After the disappointing inflation news, this could indicate that crypto is once again separating from equities and forging its own path,” Quinlivan said. “Historically, extended bull runs in crypto have often occurred when there is little to no correlation with the S&P.”
Reaction to Inflation Data
Santiment noticed the divergence between Bitcoin and equities on Wednesday following the release of inflation data. While stocks fell due to concerns about higher-than-expected inflation, Bitcoin rebounded quickly.
“The S&P is back down to where it was a week ago, while Bitcoin has remained above $70,000,” Quinlivan said. “This is one of the rare times we’re seeing a significant divergence.”
Implications for Bitcoin Price
At the time of writing, Bitcoin is trading at $70,444, showing a slight increase in the past 24 hours. If the correlation between crypto and stocks continues to weaken, Santiment believes Bitcoin could reach $80,000, $90,000, or even $100,000.
