Ever since February, Bitcoin’s price action has been largely dependent on that of legacy markets. Markets like the S&P 500, the U.S. dollar, and gold have strongly swung the directionality of BTC and the rest of the cryptocurrency market.
The strong correlations that have formed have signaled to some investors that Bitcoin’s premise of being an uncorrelated asset is false.
But according to Willy Woo, a prominent on-chain analyst, BTC may begin to decouple moving forward. Here’s more on why he thinks so.
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Bitcoin Could Soon Decouple From Legacy Markets
Willy Woo, a cryptocurrency on-chain and technical analyst, expects for Bitcoin to decouple from traditional markets due to fundamental trends. He expects for the cryptocurrency’s usage to drive prices higher as opposed to people realizing it is a hedge against certain geopolitical and macro trends:
“Bitcoin will decouple from traditional markets soon, but driven by its internal adoption s-curve (think startup style growth) rather than changes in perceptions as a hedging instrument by traditional investors. Fundamentals of user adoption have already broken all time highs.”
In terms of his near-term outlook on Bitcoin, Woo is optimistic.
Speaking earlier this week, the analyst remarked that on-chain and order book trends indicate that Bitcoin won’t move much lower than it did earlier this week.
There are also signs, he explained, of an imminent reversal as there has been a