- Santiment tweeted their latest crypto market insights this morning.
- In the report, Santiment mentioned a number of growing indications that cryptos are breaking their correlation with equities.
- At press time, the crypto market leader was trading above the $29K mark.
Santiment, the blockchain intelligence firm, shared their latest market insights in a tweet this morning following the Fed interest rate hike announcement made yesterday. The Insights started off by mentioning that Bitcoin (BTC) had quickly surged above $29,200 within 3 hours following the announcement.
Was this latest #Fed rate hike all just one massive "sell the rumor, buy the news" phenomenon for #crypto traders? We can often overreact to a repeated news event when previous ones have correlated with drops. Read our insight on our optimistic outlook. https://t.co/P32mYwUpx3 pic.twitter.com/2Lb5zFzfqC— Santiment (@santimentfeed) May 4, 2023
According to the report, the spike witnessed in BTC’s price over the last 24 hours is an indication of temporary relief since the fiscal policy will no longer be a concern until June this year. The +5% rise in interest rates in the past 14 months is not ideal, however, given that cryptos have been heavily correlated to equities in the last year and a half, the report added.
Correlation between BTC, ETH, and SPX (Source: Santiment)
Santiment questioned whether this correlation will continue for much longer given the “growing indications of separation between the two sectors.” Today was another good example of cryptos breaking their links to equities, as the entire market “saw some strong indications that crypto was taking a turn for the better,” according to Santiment’s insights.
On-chain metrics showed that Bitcoin’s address activity reached its highest level in two weeks yesterday, with the previous rise credited to a reaction from traders to a sharp price drop. The report also highlighted that there are no extreme shorts for the largest cryptos by market cap.
At press time, the price of BTC stood at $29,175.44, according to CoinMarketCap, after it printed a 24-hour gain of 1.90%. This 24-hour gain by the market leader had also flipped its weekly price performance into the green, which stood at +1.36%. Overall, the global crypto market cap stood at around $1.20 trillion, which shows a 1.56% increase over the past day.
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