Bitcoin has seen a huge price increase in 2021 so far, but this boom cannot last forever. So when will it be finished? Podcaster Nathaniel Whittemore recently spoke about the methods of analyzing whether or not we’re close to the top.
When will the bull market go into a bear market?
– There is really no macro-peak in the sense that the conditions are so well suited to the narrative Said Whittemore, host of the podcast titled “The Breakdown.” – If we see another large round of aggressive fiscal action under the Democrats, and after a few months, the speed of money in circulation remains low and inflation moderated, there will be a return to the notion that inflation simply is not something that will be restored among some financial managers and institutions. have to worry – he added, suggesting that then institutions will stop buying cryptocurrencies.
As a reminder, after the March crash, Bitcoin rebounded faster than the US stock market, which saw a similar decline. After the halving in May, BTC fell into a sideways trend that continued throughout the summer. The BTC price dynamics increased only in the last months of 2020. In the background, many large companies purchased cryptocurrencies. It was supported by US policy – the government worked on stimulus packages, the Fed lowered the interest rate. and it was already openly said that the goal of the authorities was to devalue the dolata.
All of the above made BTC cost about $ 40,000. But what happens next in the field of price?
The course is overheated?
Theoretically, the course is already overheated.
– The local peak could come if people get nervous about that [kurs BTC] it is just overheated and when new retail investors emerge Whittemore said. – It hasn’t happened yet, but we seem to be slowly getting to it.
Just eight days after the New Year, Bitcoin has already risen more than 40%, according to TradingView.com. – The breakout speed is quite stunning – this cannot be denied Whittemore explained.
He added, however, that in his eyes BTC still remains “An undervalued asset with an insanely limited supply will come by assumption and will eventually be re-valued.”