📊 Consistently since early 2022, Bitcoin and the S&P 500 have maintained a fairly consistent correlation with one another as monetary policy and geopolitical events have impacted both at a similar level compared to any other point in crypto's existence. In other words, they tend to rise and fall in the same general direction when investor sentiment across risk assets changes. When the S&P 500 shows resilience (declining just -1.6% in the past week), it often signals that investors are still willing to take on some level of risk, which eventually spills into crypto. Conversely, when stocks decline sharply, Bitcoin tends to follow as traders de-risk across all speculative assets. And for now, a strong sign for patient cryptocurrency holders is the fact that equities (and even gold) are maintaining their levels well. Bitcoin’s performance has diverged significantly from the S&P 500 in the past week, dipping -12.2% and being on the brink of sub-$100K levels for the first time in over 4 months. This sharp underperformance suggests that crypto markets may have become oversold. Extreme volatility in crypto often leads to a “rubber-band” effect, where traders’ capitulation can lead to a huge bounce-back once selling pressure subsides. If the S&P 500 stabilizes or begins to climb again, Bitcoin’s larger drawdown leaves much more room for upside momentum. There can be a favorable environment for a massive crypto relief rally once US and world stock markets start gaining positive momentum again. The recent decoupling between $BTC and the S&P 500 may not be a sign of structural weakness, but actually an opportunity for traders who can wait out a bit more pain if necessary.

📉 Bitcoin is down to $101.8K, now concerning traders with the prospect of the asset dropping below $100K for the first time since June 22nd. 🐳 Whales and sharks holding 10-10K $BTC hold 68.5% of Bitcoin's supply, and have dumped 38,366 coins since October 12th (a -0.28% drop). 🦐 Shrimps holding <0.01 $BTC hold 0.25% of Bitcoin's supply, and have accumulated 415 coins since October 12th (a +0.85% gain). 📊 In short, bulls need to see this trend completely flip in order to expect a sustained price rebound for all of crypto. Markets rise when key stakeholders accumulate the coins that small wallets shed. 👋 Micro traders (shrimp) need to show capitulation and fear, losing patience and selling off their coins at a loss as whales scoop them up and begin reaccumulating. When this happens (and it will), it will signal a market bottom and an ideal time to buy. We will keep you posted when signs of this become clear.

🔐 Despite Bitcoin's market value dropping 14% since its all-time high back on October 6th, an encouraging sign is the fact that $BTC is generally staying off of exchanges. Overall, when a coin's supply is not moving to exchanges, the risk of further sell-offs are limited. 👉 There are 208,980 less total BTC on exchanges compared to 6 Months Ago 👉 There is 1.08% less total BTC available supply on exchanges compared to 6 Months Ago 🔖 Keep track of how thousands of coins' supply on exchanges fluctuates by bookmarking this handy chart: