What Do On-Chain Data Show for Bitcoin? Correlation with Stocks Is Gradually Declining

A recent study released by cryptocurrency analyst Santiment, claiming “digital assets are starting to diverge from the traditional markets” amid growing global uncertainty and war tensions.

In recent weeks, the cryptocurrency market has resisted against S&P 500 and gold, according to data shared by Santiment analyst Brian Quinlivan.

examining the last five weeks shows that while the S&P 500 Index is down around two, it has lost about 2 per cent. Bitbit 2%, Bitcoin has increased by 2 per cent. gold, 4% and by 3 three parodyrs. paraphrasing 7%, and 7 per cent of the. Bitcoin is now beginning to break its relationship with stocks and is charting its own trajectory, ‘digital gold’ during periods of increased geopolitical risk, Santiment notes.

During the last two weeks, “whale and shark” wallets of between 10 and 10,000 $BTC have started to pile up again,” according to onchain data. Thousands of 100-plus $BTC wallets have crossed the record, reaching a historic milestone with over 20,000.

Although small investors (with holdings below 0) were denied by the (although they are not. analysts see the short-term bull trap, long-lasting indicators remain positive and analyst views 01 $BTC) to leave the market and their attempts to buy every dip are seen as a short term bull pimple.

Santiment (which studies the Market Value – Realized Value (MVRV) ratio) analysis of Santment notes that the 365-day MVR V is about -25%. Statistically, buying at these levels is much less risk than when the market peaked and long-term investors are now on loss, according to this data.

A graph showing the change in MVRV values throughout the year.

But with the low exchange funding rates, it is clear that investors are taking short positions assuming Bitcoin price to fall into decline. This could lead to a “short squeeze” and the liquidation of these positions would make the price go up, Santiment says, adding that “the cost will rise upwards.”

Currently closely following Bitcoin, Ethereum is now in close proximity to Bitcoin but an acceleration of network growth and active address numbers are noted as a slow decline. The best performers this week were Dogecoin and Internet Computer (ICP), while privacy-focused coins are seen as being ‘loss value’.

*This is not investment advice.

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