Economist: Early Days of Bitcoin Uptrend Are Here, Breakout Has A Long Way To Go
Bitcoin price is on fire again, after spending three full months trading sideways. After busting through resistance at $10,000 and out of its downtrend, the asset quickly rocketed to over $12,000.
Still, one economist says that this is just the “super early days” of Bitcoin’s next uptrend. And the monthly crypto chart shows that this rally has a long way left to go.
The Early Days of Bitcoin’s Bull Market Are Here, According To Raoul Pal
Is Bitcoin’s bull market finally here? That’s what investors, traders, and analysts are scrambling to figure out.
The first-ever cryptocurrency is currently experiencing a perfect storm for its rise back to mainstream stardom. The bear market came to its roaring conclusion on Black Thursday, and the higher low on long-term timeframes confirmed a new uptrend is here.
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Bitcoin’s halving is now in the past, and any post-halving selloff would have taken place by now. Stock-to-flow models based on the asset’s digital scarcity claim the asset is wildly undervalued.
This is something that economist and global macro investor Raoul Pal thinks that institutional investors will soon come to realize, just as retail investors have in the past.
According to Pal, the Bitcoin monthly price chart only just recently broke through resistance, and that the recent uptrend is still “super, super early days” for the cryptocurrency’s next uptrend.
Pal says it’s only just the beginning, and Bitcoin’s next climb has a long way to go in terms of “time and price.”
Institutions, Digital Gold Narrative To Drive Long-Term Valuations
Part of that perfect storm for Bitcoin is the dollar’s continued decline and stimulus packages pumping money supply into the global economy. The further the dollar inflates, the more relative value it imparts into the asset due to its limited, 21 million BTC supply.
The same sort of economic environment has been a major boost for gold, recently setting a new all-time high. Bitcoin is often considered digital gold, due to the cryptocurrency sharing several key similarities with the precious metal and safe haven asset.
But even Bitcoin is breaking out against gold, according to Pal. Or at least it is about to. Gold is experiencing its first major pullback since breaking its record, just as Bitcoin pushes through its strongest resistance yet.
The breakout could be a sign of another new trend forming: gold bugs moving their holdings or profits into Bitcoin.
Gold investors in Hong Kong have begun moving their gold offshore due to growing security concerns. Bitcoin without a physical counterpart makes it a better and more secure store of value.
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It is for all of these key reasons and more, why institutions will soon wise up as Pal says, and realize Bitcoin’s enormous potential. And as soon as they do, capital will become pouring into the asset’s market cap like never before.
If Bitcoin can capture even a small portion of gold’s market cap, the asset will begin its uptrend towards some of the astronomical long term price predictions that many expect.
OhNoCrypto
via https://www.ohnocrypto.com
Tony Spilotro, Khareem Sudlow