Key Points:
- Bitcoin’s upgraded outlook as a “safe haven” during equity and bond market turbulence.
- ByteTree’s analysis showing Bitcoin’s resilience, even outperforming traditional markets.
- Expert opinions on the cryptocurrency’s potential in the face of rising bond yields and economic uncertainty.
A recent report by investment research firm ByteTree has upgraded Bitcoin’s price outlook from “neutral” to “bull,” attributing this change to its role as a “safe haven” during a period of equity and bond market turbulence.
During Thursday’s U.S. morning hours, Bitcoin (BTC) briefly surged above $28,000, but it subsequently dipped to as low as $27,300 as traders capitalized on the rally.
At the time of writing, the largest cryptocurrency by market capitalization was trading at $27,500, having remained relatively flat over the past 24 hours. Despite this, it has outperformed the broader cryptocurrency market. The CoinDesk Market Index (CMI), which includes various digital assets, was down by 0.3%, while ether (ETH) experienced a 1.8% decline during the same period.
John Glover, the chief investment officer of Ledn, anticipates that the market will sell off during the short term in the absence of new capital flowing into digital assets. He believes that this rally will be short-lived. However, he expects a more enduring appreciation later this year and in early 2024, as Bitcoin seems to have completed its corrective phase. He stated, “I do believe that BTC prices will be higher in three months than they are today as technically we’ve completed the sell-off, and I now look for a sustained rally into Q2 2024.”
Bitcoin as a Safe Haven Amid Rising Bond Rates
ByteTree, the investment research firm, upgraded its BTC market signal from neutral to bull in a report released on Thursday. The recent price action of Bitcoin has defied the challenging conditions in traditional financial markets, positioning it as a safe haven amid the turmoil in equity and bond trading.
Charlie Morris, the chief investment officer of ByteTree, highlighted Bitcoin futures’ strength, particularly when compared to the bond market crisis. He stated, “It is the true safe haven from Uncle Sam’s bonds,” emphasizing that BTC is outperforming the U.S. stock market during a period of surging bond yields disrupting traditional markets. Morris predicted that once interest rates peak and the bond sell-off subsides, Bitcoin will be poised for significant growth.
Morris also noted that during Bitcoin’s recent corrective phase, it held above the crucial $25,000 level, which had acted as a price ceiling between May 2022 and March 2023. He expressed confidence in Bitcoin’s current bull market status, albeit a relatively quiet one, as long as it maintains the $25,000 support level.
Despite Bitcoin’s resilience in the face of rising bond yields, Edward Moya, the senior market analyst of the Americas at forex trading firm Oanda, pointed out that Bitcoin has been “trapped in its $26,000 to $30,000 cage.” Additionally, he noted that the ongoing bond market sell-off is posing challenges for many crypto startups, which is a factor limiting optimism among crypto investors.
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Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.
