One long-term bearish argument for Bitcoin is that it is merely another “risk-on” asset. Historically, Bitcoin has acted like a leveraged Nasdaq product, performing dramatically in the bull market of stocks and in the bear market. However, yesterday, Bitcoin and iShares Bitcoin ETF (ibit) It helped me a lot in disproveing that. Despite the stock massacre yesterday, Bitcoin rose 3%, regaining its 50-day moving average.
The relative strength of the world’s biggest cryptocurrency stood out like a sore thumb on Monday, but it’s more than just a day’s event. It’s becoming a trend. NASDAQ and major US stock indexes are below the long-term 200-day moving average, while Bitcoin is above the medium-term 50-day moving average. Bitcoin, on the other hand, is almost flat, but S&P 500 index ETF (spy) and NASDAQ 100 INDEXETF (QQQ) Each is down by two digits. Below are four reasons why Bitcoin breakout just began.
Global M2 measures the global money supply, or various forms of current assets that can be rapidly converted to cash. Bitcoin shows a shockingly high correlation compared to M2 (60-90 days delay). With the central bank ready to print money and the global M2 set up to spike, Bitcoin should follow suit.
Image Source: TradingView
Bitcoin is a safe inventory against tariffs and Fiat Mayhem
There is a lot of macroeconomic uncertainty as China and the US are currently stuck in the midst of a troublesome and escalating trade war. Unlike Fiat currency, Bitcoin has unique and powerful attributes, including rarity, decentralization and global accessibility. Just as a trade war is looming, international investors will probably park some of their funds in Bitcoin.
Micro Strategy (MSTR) It was the first public company to actively adopt the “Bitcoin Standard.” The company has been a top performer and a key indicator on Wall Street since adding Bitcoin to its balance sheet. Bitcoin proxy MSTR has come out of bull flag patterns for months. When the stock did this in the second half of 2024, it more than doubled within three months. Additionally, the stock cleans upside down the internal doji candles. Add a bullish layer to your breakout.
Image Source: TradingView
The success of MSTR in the Bitcoin standard is turning into a Wall Street domino effect. A company that builds MicroStrategy success and slows down legacy businesses but has a wealth of cash stacks will use that cash to buy Bitcoin and bring the company to life new. GameStop (GMEand Semler Scientific (SMLR) Here is a recent example of a company that has added Bitcoin to its balance sheet.
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