Cryptocurrency analysis platform Santiment recently released a report indicating that amid increasing global uncertainty and geopolitical tensions, digital assets are gradually decoupling from traditional markets.
Santiment analyst Brian Quinlivan shared data showing that in recent weeks, the cryptocurrency market has demonstrated greater resilience against the S&P 500 index and gold.
Analysis over the past five weeks shows that the S&P 500 index has fallen by about 2.2%, while Bitcoin has risen by 2.4% and gold by 3.7%. Santiment noted that Bitcoin is beginning to break its correlation with the stock market, moving into an independent trend and being viewed as “digital gold” during times of heightened geopolitical risk.
On-chain data indicates that wallets holding between 10 and 10,000 BTC, referred to as “whales and sharks,” have started to accumulate again over the past two weeks. The number of wallets holding 100 or more BTC has surpassed 20,000, reaching an all-time high.
While small investors (holding less than 0.01 BTC) are reluctant to exit the market and are attempting to buy the dip, analysts believe this could be a short-term bull trap, although long-term indicators remain optimistic.
Santiment examined the Market Value to Realized Value (MVRV) ratio, noting that the 365-day MVRV is approximately -25%. This data suggests that long-term investors are currently at a loss, and from a mathematical perspective, the risk of buying at these levels is far lower than when the market peaks.
The negative trend in exchange funding rates indicates that investors are shorting, expecting Bitcoin prices to decline. Santiment stated that this situation could trigger a “short squeeze,” where the liquidation of these positions could lead to a significant price surge.
Ethereum currently follows Bitcoin closely, but network growth and the number of active addresses have slowed down. Dogecoin and Internet Computer (ICP) are among the best-performing coins this week, while privacy-focused coins have seen a decline in value.