Bitcoin has been closely pegged to equities as traders await signs of a breakout, reports Santiment, an on-chain analytics platform. Santiment notes that a bias toward gold and decoupling from equities could be a positive sign for bitcoin's recovery.

📊 Global equities started the week lower again as #SP500 futures fell more than -2% on looming #war concerns. #Bitcoin has been closely tied to #equities as traders await signs of a breakout. Keep a close eye on this relationship. 👀 https://t.co/06MTkomsnw pic.twitter.com/mVpiBp4Q0x

– Santiment (@santimentfeed) February 28, 2022

On Monday, the bitcoin price tried to gain a foothold near $38,000, suggesting that inflation will rise in the future.

Trading View BTC/USD daily chart, courtesy of TradingView

Charlie Bilello, founder and CEO of Compound Capital Advisors, tweeted that the Federal Reserve's balance sheet hit another record high of $8.93 trillion, more than doubling in the past two years, as the Fed continues to buy bonds. The U.S. inflation rate also reached a 40-year high this month.

U.S. inflation hit a 40-year high this month and the Federal Reserve is still buying bonds. Their balance sheet hit another record high this week, reaching $8.93 trillion, more than doubling in the last two years. The Fed’s new policy: adding fuel to the fire.

Plotting K-line charts via @ycharts pic.twitter.com/FlwNuog4Zr

At press time, bitcoin was changing hands near $38,315, up nearly 1% on the day. Earlier, the price fell to a low of $37,020 on Feb. 27, indicating a move against the traditional market.

Bitcoin Increase Shifts to Retail Holders

Glassnode, an on-chain analytics firm, reports that most bitcoin wallet groups are now in a net position to increase their holdings, with smaller holders being the most aggressive.

Most #Bitcoin wallet groups are now in net additions, with smaller holders being the most aggressive.

This heatmap shows the #Bitcoin upside score for each wallet group.

Shortly after Whale's action, retail investors appear to be acquiring bitcoin tokens at a discount, as there is currently market volatility in the cryptocurrency's short-term price action.

On-chain analytics firm Santiment earlier reported that whales added heavily to bitcoin holdings when it fell to a low of $34,322, noting the largest volume of over $100,000 and $1 million since Jan. 24.

As the bitcoin price bottomed out at $34,700, the whales made some massive trades. This was the largest amount of $100K+ and $1M+ BTC trades since January 24, followed by a +15% price increase over the week.