The secret to breaking bitcoin’s sideways price movement is to call it a stablecoin, the crypto community has learned.
The community is currently buzzing with activity and excitement, as bitcoin broke out from its below $9200 resistance to reach $9500 and is currently trading green at a little below $9600.
With much speculation and analysis from top financial and experts in the crypto space, the current upward Bitcoin price movement has been followed by a lot of opinions.
A recent Twitter thread by a crypto investor and financial expert confidently states that it is time to get greedy on Bitcoin and key altcoins. Bitcoin’s recent breakout follows an “extended consolidation” which means people should be HODLing for the long-term.
“$BTC in particular in only now trying to breakout. Breakouts after extended consolidation are for buying not selling. Both charts and current and future landscape favor being long.”
Similar to S&P for the Stock market, Bitcoin is the acting “index” of the crypto market, a telltale on which direction the market is going.
2020 Bull Run Cares About the Stock Market
Bitcoin and S&P’s relationship started in March during the wide market crash that saw the S&P 500 reach its worst low in over 30 years, with Bitcoin crashing along with the collapse of the crypto market.
While the crash might have derailed Bitcoin’s inevitable bull market in 2020, all the conditions predicted to set the stage are coming to fruition.
For instance, a June report by Investor Place predicted that in 2020, the crypto market will have a once in a lifetime opportunity due to increased adoption, more coverage from mainstream media, more products and services, and increased support by governments through regulation.
“Demand growth should accelerate in 2020, driven by the introduction of more financial derivative products, broader support from central banks and increased recognition as a digital store of value.”
Furthermore, countries like India, Germany, South Korea, and Russia have set a legal framework for Bitcoin trading. Joining the list in a surprise move was the Office of Comptroller of Currency giving the green light to US banks to custody crypto assets which goes a long way to boosting mainstream confidence in the legitimacy of Bitcoin.
However, the analyst stated that the current global financial crisis still makes Bitcoin and S&P’s correlation viable, since the stock market is bound to react to the Fed’s fiscal packages.
“Major bullish catalyst in the horizon: the Fed letting inflation rise above 2% Assets to benefit the most are our friends: stocks, precious metals and Tips (as real estate rates go more negative).”
Altcoins are already in season, as confirmed by both Binance CEO and eToro crypto trading platform. According to eToro, there’s accelerated adoption of stablecoins for their convenient fast and cheap transactions for remittances, as well as a store of value against high inflation.
The stimulus packages especially have increased concerns as people move to protect their assets from fiat currency inflation since central banks are massively increasing deficit spending.
Therefore the bull market is undoubtedly over the horizon, and Bitcoin, with its limited supply and followed closely by altcoins, is looking pretty reliable as a store of value.
However, the breakout above $9500 is just the first step to reach the sentimental $10,000 mark which will set the stage for bitcoin to skyrocket.
This Article Is Provided For Informational Purposes Only And Shouldn’t Be Taken As Investment Advice. Every investment and trading move involves risk, you should always conduct your own research before making any investment decision.