Bitcoin (BTC) has displayed initial indications of breaking away from the traditional equities market, surging ahead of the S&P 500. Currently, Bitcoin is valued at $100,839, marking a 1.39% increase over the past 24 hours and a 7.16% rise in the previous seven days.
This shift in momentum is significant, with analysts suggesting that a reduced correlation with conventional markets could signal the onset of a new bullish phase.
Bitcoin Breaks Away from S&P 500
Recent data from Santiment reveals that Bitcoin began outperforming the S&P 500 in January 2025. While Bitcoin saw a daily gain of 3.7%, the S&P 500 only experienced a marginal upturn of 0.4%, indicating a clear diversion. According to insights shared by Santiment on X (previously Twitter),
“Over the last three years, the cryptocurrency market has often been viewed as analogous to a ‘highly leveraged technology stock,’ but current trends suggest that BTC might be moving away from mirroring stock market fluctuations.”
Historically, the crypto market has seen its strongest bull markets during times of low correlation with equities. Analysts are optimistic that if Bitcoin can maintain its independent trajectory and detach from macroeconomic influences, it could pave the way for new record highs in 2025.
Robust Support Levels and Limited Resistance
Analyst Ali highlights that Bitcoin is comfortably above a crucial support range between $95,400 and $98,400, where 1.77 million wallets have accumulated 1.53 million BTC. This accumulation zone signifies a robust demand area that could act as a buffer against substantial price drops.
On the flip side, Bitcoin encounters minimal resistance, with only 107,000 BTC held by 102,168 wallets between $104,700 and $105,770. Analysts predict further upward movement once BTC surpasses this modest resistance zone, as selling pressure remains constrained at higher price points.
The prevailing positive sentiment indicates a strong confidence among investors in the future trajectory of Bitcoin.
Elevated Open Interest and Trading Activity
Data from Coinglass highlights a surge in Bitcoin Futures Open Interest, currently standing at $64.96 billion, reflecting a 2.20% daily increment. Open Interest (OI) has been consistently rising since mid-2024, aligning with Bitcoin’s price surge and indicating heightened speculative interest.
Moreover, trading volume has spiked by 49.82% to $86.96 billion, while options volume has climbed by 76.78% to $3.54 billion, signaling a growing level of engagement among traders.
However, the escalating OI and leveraged positions pose a potential risk of increased volatility. The BTC Total Liquidations Chart shows $17.87 million in long liquidations and $2.95 million in short liquidations in the previous trading session.
This discrepancy hints that highly leveraged long positions were liquidated during minor price corrections.
With sturdy support levels and limited resistance on the horizon, analysts are optimistic about Bitcoin’s prospects to challenge new all-time highs should it continue to distance itself from traditional market dynamics.