Bitcoin following S&P500? Investors’ sentiment tell us what’s happening
Investing in crypto was traditionally thought to be a way to diversity one’s portfolio and hedge against market risks or inflation. However, when looking at Bitcoin’s recent price performance, analysts are asking if mainstream adoption and world events are changing this narrative.
Data from Santiment showed that while Bitcoin had rallied back to over $40,000, it was on shaky footing. This came after a drop during the week. What’s worth noting, however, is that the S&P500 also fell. On the other hand, gold prices hit an eight-month high.
What could be the reason for these drastic changes? The civil and economic tension in Europe could be a major factor. After all, news companies have been speculating for days as to whether or not Russia will invade Ukraine. As FUD fills the air, it’s only natural for investors to gravitate towards hard as well as tangible assets like gold. Stocks – and now Bitcoin – seem to be paying to price.
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