Bitcoin Rose 36% in Five Weeks, Outperforming Gold: Can It Last?
Bitcoin rose 36% in Santiment’s five-week comparison, outperforming the S&P 500 and gold; the platform said demand and liquidity support will need to hold for the divergence to continue.
In the Sanbase chart shared by Santiment, Bitcoin’s performance from August 18 to September 22 is shown at 36%, while the S&P 500 gained 0.8% and gold changed by minus 1.5%. The platform interprets this five-week picture as Bitcoin moving, for now, in response to factors specific to the asset.
What set Bitcoin apart from other markets?
Santiment links the start of the rally to selling by the small-investor group holding balances between 0.1 and 10 BTC in mid-August. The assessment is not that everyone in this group left the market, but that the price trend shifted during a period when small investors were selling.
According to the platform, other factors supporting the rally include the U.S. Treasury Department doubling the size of its long-term bond buybacks starting in early September, a return of ETF demand, and recurring short squeezes. As Bitcoin broke through resistance levels, traders holding bearish positions may have been forced to buy to close their short positions, providing additional support for the move. These factors are part of Santiment’s analysis; the chart alone does not establish a cause-and-effect relationship.
Three supports are needed for the outperformance to continue
Santiment says Bitcoin’s ability to continue outperforming other assets depends on the continuation of ETF demand, liquidity, and institutional participation. By contrast, rising leverage and investor enthusiasm increase the risk of a sharp pullback in the short term. Therefore, the performance of the past five weeks does not mean the same divergence will continue from here.
The platform notes that stocks remain near record levels but face high interest rates and uneven participation in the rally. According to Santiment, stocks need strong corporate earnings to overcome pressure from high bond yields, while gold needs falling real interest rates or increased demand for safe-haven assets to regain prominence.