Investment company ByteTree Asset Management raised The market signal for Bitcoin has changed from neutral to bullish as digital gold becomes a safe haven for losses in US stock and bond trading.
Data: ByteTree Asset Management.
“Bitcoin futures look good, especially when compared to the bond market crisis,” Charlie Morris, the firm’s founder and chief investment officer, wrote in a research note.
He noted that the first cryptocurrency is outperforming the US stock market at a time when rising bond yields are hurting other traditional sectors. When interest rates peak and the bond sell-off ends, digital gold will “enter the fray,” the analyst said.
“First of all, Bitcoin is a real safe haven from Uncle Sam’s bonds,” Morris emphasized.
He noted that during the last correction, the asset remained above the key level of $25,000. From May 2022 to March 2023, it acted as a resistance level.
“If we can hold $25,000, which we probably will, Bitcoin will be in a bull market, albeit an inactive one,” Morris believes.
Ledn Investment Director John Glover comments to CoinDesk also predicted the growth of the first cryptocurrency in the near future. However, he believes that the movement will be short-lived due to the lack of new money flowing into the market.
“I believe Bitcoin prices in three months will be higher than they are today since we have technically completed the sell-off. But I expect a steady upward trend in the second quarter of 2024,” he said.
Oanda trading firm analyst Edward Moya was more pessimistic about the immediate prospects for digital gold. The asset remains “trapped in its $26,000 to $30,000 cage,” he said.
“What’s stopping Bitcoin investors from becoming more bullish is that the bond market sell-off refuses to end, and that will hurt many crypto startups,” he added.
Over the past week, the price of the cryptocurrency has tested the $28,000 mark twice. At the time of writing, the asset is trading around $27,750 (CoinGecko).
Hourly chart of BTC/USDT on the Binance exchange. Data: TradingView.
Recall that in September, SkyBridge Capital founder Anthony Scaramucci predicted a bull decade for Bitcoin. The investor suggested that the worst of the current bear market is behind us.
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2023-10-06 12:41:09
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