Experts at Santiment have stated that Bitcoin is currently undervalued and is losing its correlation with traditional equities.
Over the past three months in 2025, the cryptocurrency market has diverged from the stock market, according to Santiment analysts. During this period:
- Gold rose by 21%
- S&P 500 increased by 7%
- Bitcoin’s price fell by 15%
“Considering four years of strong correlation, it is reasonable to say that Bitcoin is undervalued at present,” the analysts noted.
A participant in the discussion on X (formerly Twitter) added that this decoupling reflects ongoing internal liquidity stress within the cryptocurrency market, even as traditional markets continue to grow.
Risk management insight: The situation highlights the importance of managing risk and protecting capital, especially when cryptocurrencies diverge from conventional assets.
Previously, BlackRock CEO Larry Fink observed that investors are increasingly turning to precious metals and cryptocurrencies due to concerns over rising global government debt.
