As a researcher with extensive experience in the cryptocurrency market, I find Santiment’s analysis intriguing. The observation that Bitcoin has been lagging behind the S&P 500 and other equities in terms of price performance is indeed a rare sight over the last three years. This phenomenon could suggest an eventual bullish catch-up period for Bitcoin.
As a researcher studying the cryptocurrency market, I’ve observed some price recovery in Bitcoin over the past week after a significant market downturn on July 5, resulting in a 10% drop in Bitcoin’s value. Currently, industry analysts are expressing optimistic views and sharing their insights that suggest a potential market rebound for Bitcoin could be imminent, potentially leading to a long-anticipated bull run.
Bitcoin’s ‘Rare’ Underperformance Hints At Possible Bullish Rebound
In a post on Friday, Santiment, a well-known blockchain analysis firm, shared some captivating observations about Bitcoin’s recent price trends. According to their analysis, Bitcoin has been lagging behind the S&P 500 and other equities in terms of price growth – a situation that Santiment deemed unusual over the past three years.
Although Bitcoin experienced a modest bounce-back towards the end of the week, its previous decline occurred while the S&P 500 and stocks were thriving. This situation is unusual as most crypto rallies have coincided with equity markets in the past three years. Bitcoin’s lagging performance may indicate an upcoming bullish phase to make up for the lost ground.
— Santiment (@santimentfeed) July 12, 2024
Previously mentioned, the significant drop in Bitcoin’s price can be explained by a major sell-off on the market instigated primarily by the German government, having successfully sold all of their Bitcoins worth approximately $2.9 billion.
Mt. Gox, the defunct crypto exchange that went bankrupt in 2014, has initiated the process of repaying a $9 billion debt to its creditors in Bitcoin (BTC) and Bitcoin Cash (BCH). A significant portion of these repayments is anticipated to be sold, leading to potential heavy selling pressure. Although Bitcoin displayed some strength this week with a 2.88% increase, it continues to lag behind the positive price trends of the broader equities market over an extended timeframe.
In simpler terms, Bitcoin has dropped by nearly 20% over the past five weeks while the S&P 500 saw a smaller increase of around 5.4% during the same timeframe. This is an unusual occurrence as these assets typically moved in sync during the previous three years. As a result, Santiment predicts that Bitcoin could enter a “bullish recovery phase.”
Bitcoin To Challenge 1.5-Month Downtrend
Recently, Bitcoin, the leading cryptocurrency, has been struggling to break the prolonged downtrend that started approximately one and a half months ago. Consequently, its value has decreased by more than 18%.
Based on Rekt Capital’s analysis, Bitcoin has made several attempts to break free from its recent downtrend, including three instances in the past three days. Should Bitcoin manage a trend reversal, it could potentially lead to a full price recovery for the market leader, with prices reaching as high as $71,000.
When I penned down this text, Bitcoin was trading at $58,170 and had inched up by 1.69% in the past day. Yet, this minimal increase is overshadowed by Ripple‘s significant surge of 30.81%, pushing its price to an impressive $5,615 within the previous 24 hours.
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2024-07-13 15:40