Bitcoin Eyes $100,000 Milestone as It Decouples from Traditional Markets, Says Santiment’s Brian Quinlivan

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A market intelligence firm named Santiment has highlighted an emerging trend in a recent analysis that could significantly impact Bitcoin‘s price movement: the decreasing connection between Bitcoin and traditional stock markets. Based on their latest findings, this development could lead Bitcoin to new heights with potential prices soaring up to $100,000.

Santiment is a distinguished player in the crypto analytics industry. They excel at delivering data-driven instruments and wisdom to aid investors and traders in maneuvering cryptocurrency markets. Their expertise encompasses three primary types of data: raw blockchain information (transaction volumes and token migrations), social media sentiment assessment, and monitoring development work on repositories such as Github. Santiment’s objective is to equip users and subscribers with means to explore, illustrate, and dissect this rich assortment of data. They provide pre-designed dashboards, customizable graphs, and notifications, all geared towards empowering users to make wiser decisions through a blend of the data insights and their personal assessments.

Brian Quinlivan, marketing director at Santiment, shared in a recent post that Bitcoin seems to be following its own path instead of mirroring the stock market’s fluctuations. Notably, historical data suggests that Bitcoin performs well when its price swings differ from those of the overall stock market, as per Quinlivan.

After the publication of the March Consumer Price Index figures, this divergence between equities and Bitcoin became more noticeable. While equities were negatively affected, Bitcoin responded differently.

Based on data from the U.S. Bureau of Labor Statistics, the Consumer Price Index for urban consumers (CPI-U) grew by 0.4% in March. This matches the rate of increase seen in February. Over the past twelve months, this index has risen by 3.5%, unaffected by seasonal fluctuations.

The primary factors fueling the surge in indices during March were the shelter and gasoline sectors, making up over half of the total index growth. Specifically, the energy index experienced a 1.1% rise, while food prices remained constant at home but went up by 0.1% for dining out.

Outside of food and energy costs, the essential Consumer Price Index (CPI) climbed by 0.4% in March. This growth aligns with the previous two months’ trends. Key categories experiencing price hikes were housing, car insurance, healthcare, clothing, and personal care items. Conversely, used cars and trucks, recreational activities, and new vehicles saw decreases in prices.

Over the last 12 months, ending in March, the overall index has grown by 3.5%, which is a slight pickup from the 3.2% increase observed during the prior period. The core index, without factoring food and energy costs, increased by 3.8%. Energy prices experienced a 2.1% hike, marking their first annual percentage rise since February 2023. The cost of food items went up by 2.2% over this same timeframe.

Quinlivian pointed out that Bitcoin bounced back swiftly after a minor drop, potentially caused by investors’ expectations of inflation announcements. In contrast, the S&P 500 experienced a reversal and returned to its price range from approximately a week ago.

In recent months, Quinlivan noted, this situation isn’t unique. Cryptocurrencies and stocks have typically moved in tandem. However, there have been occasions where cryptocurrencies have diverged significantly from stock market trends over the past two years. These instances highlight Bitcoin’s capacity for independent price movements, particularly during economically uncertain periods.

According to recent market information, Bitcoin’s price was around $70,632, with little change from the previous day.

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2024-04-12 13:24