Santiment, a leading crypto behavior analytics platform, has drawn attention to a sign of a looming bull market as Bitcoin (BTC) clinches a 17-month high of $35,116.
In a brief insight on X, Santiment compared the price movements of crypto assets Bitcoin and Ethereum (ETH) to the price actions of gold (XAU) and the SPDR S&P 500 ETF Trust (SPX), an ETF which tracks the performance of the S&P 500.
The aim of Santiment’s comparison is to assess the degree of price correlation between the crypto market and traditional equities such as the S&P 500. Data from an accompanying chart shows that Bitcoin’s recent upsurge might have triggered a significant price decoupling.
Bitcoin, Altcoins Engineer Rallies
Notably, BTC, ETH, and the S&P 500 had been trading in similar price trajectories over the past months. However, from Oct. 13, Bitcoin started registering upward movements, with Ethereum following suit. Amid this upward movement in BTC and ETH, the S&P 500 dropped further, trading in the opposite direction.Â
Bitcoin was trading between $26,700 and $27,200 as of Oct. 13. However, the asset broke above the resistance at $27,100 two days later, tilling the ground for a more substantial rally. The fake news of a spot ETF approval compounded this rally, helping BTC clinch $30,000, but its effect was short-lived, as BTC dropped shortly after.
Two days of persistent declines did little to hamper the asset’s uptrend, as BTC resumed its bullish momentum on Oct. 19. Bitcoin eventually hit a high of $35,116 as demand escalated. Santiment confirms that this value was Bitcoin’s highest price since May 2022.
Interestingly, Ethereum and the rest of the altcoin market rode on this rally from Bitcoin to register new highs. In particular, ETH eventually surged to a high of $1,865 yesterday. Despite a minor rally setback, BTC holds steady above $34,000 while ETH continues to defend the $1,700 threshold.
Sign of Bull Market: A Major DecouplingÂ
Meanwhile, as BTC, ETH and other crypto assets recorded massive gains, the S&P 500 continued to drop. The S&P 500’s descent began on Oct. 17 when it traded at $4,373. While BTC rose, the index dropped, collapsing to $4,184 on Oct. 25, its lowest value since June.
The altcoin market also traded in an uptrend, triggering a price decoupling from the S&P 500. Santiment believes this decoupling is a clear sign of the coming bull market. According to Santiment, the last time this sort of inverse price movements between equities and crypto occurred was during the 2021 bull run.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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