As we get closer and closer to Bitcoin’s miner reward halving event this month, analysts are looking at Bitcoin’s last quarterly track record (2020 to date) against a cratering stock market.
Omkar Godbole notes this morning at Coindesk that Bitcoin has risen 21% as the U.S. market index indicators lag – for example, with the S&P 500 down 12% over the same time frame.
It’s interesting to note that Godbole several times uses the phrase “post-Bretton Woods system” which assumedly implies that it’s partially U.S. Federal Reserve activity that’s causing some of the market concerns that investors have.
After pandemic closures led to a tremendous unprecedented impact on American growth and GDP, the Federal Reserve has been printing billions of dollars of new money, which is having a hair-raising effect on traders.
By contrast, cryptocurrency proponents show Bitcoin’s healthy price rise over the last week or so, and other trends that suggest traders may be flocking to the cryptocurrency as a safe haven, even before a halving that die-hard hodlers are insisting will drive prices higher – as in a cited “Tweet of the Day” by Danny Scott showing prior halving numbers with the laconic tagline: “patterns emerge.”
Elsewhere, Godbole uses charts like “Bitcoin 30 Day Average Number of Twitter Users vs. 30 Day Realized Volatility” and a Daily Total Spot Volume YOY to buttress the suggestion that “there’s clearly interest in crypto,” and qualifying that this way:
“What’s driving it might be price volatility and the upcoming halving, rather than speculation that the financial system is nearing any sort of ultimate reckoning,” Godbole writes.
Meanwhile, Michael Van Der Poppe at Cointelegraph wonders about downward pressures.
“Last week has been a tremendous week for Bitcoin (BTC), as the price surged from $7,500 to $9,450,” Van Der Poppe writes. “However, since the peak high at $9,450, the top-ranked cryptocurrency by market capitalization has not seen a continuation, as the price is consolidating $800 lower. Is the halving hype over, and is the market ready for a correction after a 150% rally since Black Thursday?”
Keep an eye on BTC price – it has gone up, and down, but mostly up, this year. Will it go higher soon, or move into correction territory?
