Bitcoin Price Lagged But Poised For A Rise

Bitcoin (BTC) has fallen behind both the S&P 500 and gold in recent weeks, but historical data suggests this divergence won't last long.

The volatility in global markets is reflected in the cryptocurrency world. In the last days of September, Bitcoin was flat between 110,000 and 115,000 dollars, while the S&P 500 index reached an all-time high of 6,700. On the other hand, gold has also attracted attention by breaking above the $3,800 level for the first time in its history.

This situation is not new for Bitcoin. In previous bull cycles, there have been occasional divergences between Bitcoin and the S&P 500. However, Bitcoin has usually managed to offset such divergences within a short period of time. For example, in the March-July period of 2024, the S&P 500 rose from around 4,000 points to 4,600 points, while Bitcoin fell from $30,000 to $25,000. A similar divergence occurred in the second half of the year, with the S&P 500 moving upwards, while Bitcoin waited for a long time and only rallied sharply in November.

Now a similar picture is emerging again. While the S&P 500 has been on a steady rise since May, Bitcoin has fallen back to $110,000, failing to maintain the record it set in August. However, historical data suggests that such divergences are usually temporary. According to experts, Bitcoin is still in a bull market, and this period of calm could be a harbinger of the next strong move.

The bottom line is that Bitcoin lagging the S&P 500 and gold is a common occurrence in bull cycles. As in the past, investors expect Bitcoin to regain momentum and recover its losses. Therefore, it would be an important strategy for investors to carefully monitor Bitcoin price movements.