Analysis Company: “If This Happens, Bitcoin Will Rise Again”

Cryptocurrency analysis firm Santiment has issued a compelling assessment of the recent Bitcoin price drop. The firm emphasized the historical correlation between Bitcoin and the S&P 500 index, stating that the current divergence could signal “oversold” territory.

In its report, Santiment reminded that since early 2022, Bitcoin and the S&P 500 have been similarly affected by global monetary policies and geopolitical developments:

“When investor sentiment shifts in risk-on assets, Bitcoin and the S&P 500 typically move in the same direction. When stocks show resilience, this signals continued risk appetite, and it often carries over into crypto.”

While the S&P 500 has lost only 1.6% in the last week, Bitcoin is down 12.2%, approaching the $100,000 level, indicating that the crypto market is under extreme selling pressure, according to Santiment:

“Excessive volatility in crypto markets often causes a ‘rubber band’ effect. After panic selling by investors, a strong rebound can occur when selling pressure subsides.”

Santiment also argued that the fact that stocks and even gold are maintaining their price levels is a positive sign for patient crypto investors:

“If the S&P 500 stabilizes or rebounds, Bitcoin’s sharper decline could offer further upside potential. This divergence is not a structural weakness, but rather an opportunity for patient investors.”

*This is not investment advice.

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