As the global economy continues to navigate through uncertain times, Bitcoin’s price has been on a rollercoaster ride, leaving many investors wondering when it will finally break out against other major macro assets. According to Caleb Franzen, creator of financial research resource Cubic Analytics, this breakout is not only imminent but also inevitable.
Bitcoin vs. S&P 500: A Tale of Two Markets
Despite Bitcoin’s impressive gains in the fourth quarter of 2022, with a price surge of nearly 50% to $93,500, it has yet to surpass the all-time highs of many major macro assets, including the S&P 500 index. Franzen notes that while Bitcoin has indeed broken out against gold, it still lags behind in comparison to other leading indices.
The Key Moment: Early 2021
For US stocks, the turning point for Bitcoin’s price was early 2021, even before it reached its all-time high of $69,000. Since then, dollar records have been broken multiple times, but Bitcoin is still working on setting new all-time highs across the macro asset spectrum.
Gold and Bitcoin: A Tale of Two Breakouts
Last week, Cointelegraph reported on the market’s trend of breaking out against gold, which had a head start in setting new all-time highs in dollar terms. Charles Edwards, founder of quantitative Bitcoin and digital asset fund Capriole Investments, forecasted a "rapid repricing" now that BTC/USD has broken out.
A Long-Term Chart: Gold’s Breakout in the 2000s
Edwards shared a long-term chart of gold’s own breakout in the 2000s after spending 20 years below previous all-time highs from 1980. He suggested that BTC/USD could now do likewise, implying that Bitcoin’s price is on track to break out against other major macro assets.
Il Capo of Crypto: A Dramatic Alternative Take
In a dramatic and contrasting view, Il Capo of Crypto, a popular but infamous Bitcoin trader, has implied that a crash across risk assets is now due. In his latest Telegram post, he shared a photograph suggesting a black swan event is imminent.
Bearish Perspectives on Bitcoin: $72,000 or Lower?
While some traders are optimistic about Bitcoin’s price breakout, others are warning of a potential crash to as low as $50,000 or even lower. Credible Crypto, a fellow trader, has flagged $72,000 as the downside target to watch.
A Matter of When, Not If
Franzen’s prediction that BTC/USD will break out against other major macro assets is not without merit. As the global economy continues to navigate through uncertain times, investors are increasingly turning to Bitcoin and other digital assets as a safe-haven investment.
Investment Considerations: A Word of Caution
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. As the market continues to evolve, it’s essential to stay informed and adapt to changing circumstances.
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Bitcoin’s Price Breakout: A Matter of If, Not When
As the global economy continues to navigate through uncertain times, Bitcoin’s price has been on a rollercoaster ride, leaving many investors wondering when it will finally break out against other major macro assets. According to Caleb Franzen, creator of financial research resource Cubic Analytics, this breakout is not only imminent but also inevitable.
Why Bitcoin Needs to Break Out Against Other Assets
While Bitcoin has indeed broken out against gold, it still lags behind in comparison to other leading indices. This is largely due to the fact that many major macro assets have already reached new all-time highs, leaving Bitcoin trailing behind.
The S&P 500: A Benchmark for Macro Assets
The S&P 500 index has been a benchmark for macro assets for decades. Its performance has often been used as a gauge of the overall health of the global economy. With its all-time high still intact, it’s clear that Bitcoin has yet to match this milestone.
Gold: A Safe-Haven Asset
Gold has long been considered a safe-haven asset, providing investors with a hedge against inflation and market volatility. Its price breakout in the 2000s was a significant event, and its current price action suggests that it may be due for another major move.
Why Bitcoin May Soon Break Out Against Other Assets
There are several reasons why Bitcoin’s price may soon break out against other assets. Firstly, the global economy is facing increasing uncertainty, with rising inflation and market volatility contributing to a growing sense of unease among investors. Secondly, Bitcoin has been gaining traction as a safe-haven asset in its own right, with many investors turning to it as a hedge against risk.
Investment Considerations: A Word of Caution
While the prospects for Bitcoin’s price breakout are exciting, it’s essential to remember that every investment and trading move involves risk. Before making any decisions, conduct thorough research and consider your own financial goals and risk tolerance.
Bearish Perspectives on Bitcoin: $72,000 or Lower?
Not all traders are optimistic about Bitcoin’s price breakout. Some are warning of a potential crash to as low as $50,000 or even lower. Credible Crypto, a fellow trader, has flagged $72,000 as the downside target to watch.
Il Capo of Crypto: A Dramatic Alternative Take
In a dramatic and contrasting view, Il Capo of Crypto has implied that a crash across risk assets is now due. In his latest Telegram post, he shared a photograph suggesting a black swan event is imminent.
What’s Next for Bitcoin?
As the market continues to evolve, it’s essential to stay informed and adapt to changing circumstances. With Bitcoin’s price breakout still in the balance, investors should be prepared for either outcome – up or down.
Stay Ahead of the Curve with Cointelegraph
To stay ahead of the curve and make informed investment decisions, subscribe to our Markets Outlook newsletter. Delivered every Monday, this newsletter provides critical insights to spot investment opportunities, mitigate risks, and refine your trading strategies.
Subscribe Now and Stay Informed!
By subscribing, you agree to our Terms of Services and Privacy Policy. Don’t miss out on the latest market trends and analysis – subscribe now and stay informed!
Conclusion
Bitcoin’s price breakout against other major macro assets is a significant event that has been building momentum for months. With its price already breaking out against gold, it’s clear that investors are increasingly turning to Bitcoin as a safe-haven asset.
What Do You Think?
Share your thoughts on Bitcoin’s price breakout and the implications for the global economy in the comments below!
Disclaimer
This article is not intended to be investment advice. It’s essential to conduct thorough research and consider your own financial goals and risk tolerance before making any decisions.
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