Cryptocurrency analysis platform Santiment has released a new report that finds digital assets are starting to diverge from traditional markets amid heightened global uncertainty and war tensions.
The crypto market has shown resilience against the S&P 500 and gold in recent weeks, according to data shared by Santiment analyst Brian Quinlivan.
An analysis of the past five weeks shows that the S&P 500 index has fallen by approximately 2.2%, while Bitcoin has risen by 2.4% and gold by 3.7%. Santiment points out that Bitcoin is now beginning to de-correlate with stocks and is on its own to be seen as “digital gold” in times of heightened geopolitical risk.
According to on-chain data, “Whale and Shark” wallets store between $10 and $10,000 $BTC It’s starting to build up again in the past two weeks. Number of wallets is 100 or more $BTC The number of cases exceeded 20,000, achieving a historic record.
Although there is a rejection by small investors (holdings less than 0.01), $BTC) Exiting the market and trying to buy any bullshit is seen by analysts as a short-term bullish trap, but long-term indicators remain positive.
Santiment, which studies market value – realized value (MVRV) ratios, notes that 365-day MVRV is approximately -25%. This data shows that long-term investors are currently losing money, and the mathematics show that buying at these levels is much less risky than when the market peaked.
Graph showing changes in MVRV values throughout the year.
The negative trend in the exchange funding rate proves that investors are taking short positions in anticipation of a decline in Bitcoin prices. Santiment said this situation could cause a “short squeeze,” and the liquidation of these positions could cause prices to skyrocket.
Ethereum is currently trailing Bitcoin, but the slowdown in network growth and number of active addresses has been noted. While Dogecoin and Internet Computer (ICP) were the top performers this week, privacy-focused coins have been observed to decline in value.
*This is not investment advice.
