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Martin D. Weiss of Weiss Ratings says that Bitcoin shares the resemblance to gold and that gold has already reached its low point and that on its new bullish cycle, Bitcoin is not far behind with its solid fundamentals. At the same time, he also talks about the future bearishness on the stock market and the possible consequences on the crypto "active on risk".
Bitcoin shares similarities with gold
In his latest blog, Martin D. Weiss of Weiss Ratings talks about the bull market of Bitcoin and its resemblance to Gold.
Weiss explains that the main case of use of Bitcoin is becoming a store of value that has earned it the title of "digital gold" and "gold 2.0".
"Like gold, Bitcoins and other crypto-currencies could become a haven for investors fleeing fiduciary devaluations. In fact, in one key aspect, it can be even better than gold: it can not be confiscated by any government. "
Over the years, the Bitcoin market movement has similarities with gold, as in the highs: the two sharp corners are called "vertices" and, at the most important valleys, form bottom patterns. long, called "rounded funds".
Mr. Weiss explained that gold was in a new three-year cycle, with a recovery in its infancy. Gold is also expected to reach new highs in five years, crossing an area of $ 1,400 per ounce, which means a new high could be reached.
"Bitcoin is not far behind. The charts tell us that the market is still declining, but the improvement in fundamentals indicates that a new bull market is forming. "
First, while the market is down, more advanced and newer cryptos such as EOS and TRON have seen considerable growth. Another point made is that high-capitalization crosscalls like Ethereum and XRP have "shown signs of bear escape" and put an end to its decline. According to Weiss, the important point is that "distributed ledger technology continues to grow by leaps and bounds".
But crypto will drop further
If Bear announces a new US stock market that could start to decline in April, will that also affect cryptos?
For starters, history gives us no context since the S & P 500 is in its bull market that has lasted nine years since the beginning of Bitcoin's commercial transactions.
"Whether it's daily, weekly or monthly fluctuations, there's virtually no statistical correlation between actions and crypto."
However, the main concern is that Cryptos is a risky badet like stocks and speculative real estate. So, will investors rush to sell anything they badociate with risk such as cryptos if their stock portfolios sink into a bear market? Weiss's answer is "of course" and this could put downward pressure on crypto prices.
However, he says, "We can not imagine too many investors getting up one morning and saying," Oops! Big losses in my stocks! I will sell my crypto to get money. "And we doubt that this factor is the main driver of Bitcoin prices."
He concludes by advising not to let the equity market distract you from investing in crypto and until Bitcoin reports that its own bear market is over, caution requires caution.
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Improved Bitcoin fundamentals indicate new bull market is in preparation, according to Weiss Ratings
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Martin D. Weiss of Weiss Ratings says that Bitcoin shares the resemblance to gold and that gold has already reached its low point and that on its new bullish cycle, Bitcoin is not far behind with its solid fundamentals. At the same time, he also talks about the future bearishness on the stock market and the possible consequences on the crypto "active on risk".
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Anjali Tyagi
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Coingape
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