It looks like Bitcoin is shaking off its ties to Wall Street, and that’s got investors being quite excited.
New data suggests that we might be on the verge of hitting new highs this year, and 2025 is starting nice, as Bitcoin is back above $100,000.
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Bitcoin-equity relationship matters?
There’s been a noticeable shift in how Bitcoin correlates with traditional equities, especially the S&P 500.
Since Donald Trump strutted back onto the political stage as the 47th US President in November 2024, Bitcoin and stocks have been pretty much joined at the hip.
But data from Santiment shows Bitcoin gaining steam, jumping over 3% in a single day while the S&P managed a mere 0.4% rise.
This divergence is pretty significant because it hints that Bitcoin might be breaking away from its normie label as a high-leveraged tech stock, and for those who’ve been around the block, you know that Bitcoin tends to shine brightest when it’s not tethered to traditional markets.
Experts are optimistic that if this trend continues, we could see Bitcoin grow to $140,000 in the coming months.
#Bitcoin looks ripe to complete the cup & handle formation.
$140,000.
Send it. pic.twitter.com/Nh9ho3WLDR
— Jelle (@CryptoJelleNL) January 6, 2025
Is the crypto market in its final stretch?
Now, let’s chat about what this decoupling means for the crypto market, because some indicators suggest we might be entering the later stages of this bull cycle that kicked off back in January 2023.
CryptoQuant data reveals that Bitcoin has seen impressive growth both in price and duration, thanks to a flood of investments from new and existing players.
Long time holders are dominate the sector?
Currently, about 36% of Bitcoin is being traded for less than a month, and while this isn’t as high as previous peaks, it still shows a downtrend that could signal a market peak by early to mid-2025.
Analysts are predicting that we might see this ratio spike by two to four times before things get too heated and trigger the next bear cycle. So if you’re holding onto your BTC, just don’t forget that things could get wild.
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