According to crypto analytics firm Santiment, the relationship between Bitcoin (BTC) and the stock market is losing its grip.
Santiment says that Bitcoin and altcoins tend to rise when they have little correlation with stocks. stated. Additionally, following the release of the latest US Consumer Price Index (CPI) data on Wednesday, the S&P 500 and gold reported that crypto rebounded, while gold fell.
“If the correlation runs out, that’s a good sign of a potential breakout.”
There is another analysis that supports Santiment’s data. According to a recent report from Bloomberg, the correlation between Bitcoin and US stocks has dropped to its lowest level this year. The 40-day correlation coefficient for Bitcoin and the Nasdaq 100 index fell below 0.50 to levels last seen in January. According to experts, if the said rate continues to decrease, we may witness a tangible recovery in Bitcoin price.
Bitcoin is trading at $21,078 at the time of writing. The top-ranked crypto asset by market cap has gained more than 2% in the last 24 hours.
Santiment also noted that the price of Cardano (ADA) has dropped by about 70% since the beginning of 2022, which has increased negative social sentiment towards its Ethereum (ETH) rival. But according to the analytics firm, this is potentially a positive development for the price of ADA in the short term.
“The last time the community was this negative, in January, the ADA recovered +24% in 5 days until sentiment turned positive again.”
Cardano is trading at $0.44 at the time of writing. The 8th-ranked crypto asset by market cap has gained approximately 1.69% in the last 24 hours.
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.