Bitcoin’s (BTC) price momentum recently pushed the asset to nearly $ 42,000 a coin. The price has more than doubled in the last two months, breaking the previous record highs that it fell back in 2017. Podcaster Nathaniel Whittemore recently gave his views on methods to spot a macro bull market top for the digital currency.
“There’s not really a macro top in the sense that the circumstances fit the story so well,” said Whittemore, podcast host The breakdown, Cointelegraph told. He added:
“If we see another big round of aggressive fiscal measures under the Dems, and after a few months the turnover rate is still low and inflation limited, you might see a shift in certain money managers and institutions to the idea that inflation is just It’s nothing to worry about, which could hurt some of the animated thesis. ”
After a rock bottom price in March, Bitcoin recovered faster than the US stock market, which suffered a similar decline. After completed its third halving ever In May, the asset showed a sideways trend throughout the summer, but the overall macro trend was upward. BTC’s price momentum increased in the last months of 2020, in line with a number large corporations allocating capital to the digital asset.
The American economic scene also plays a part in the equation. The government has, and has, worked on a number of stimulus packages has printed a significant amount of dollars.
Earlier macro Bitcoin bull markets have come up with price corrections amid a larger bullish outlook. Local crests refer to shorter-term price stops that occur prior to corrections within such a macro landscape. “There could be a more local summit if people get nervous that it’s just too frothy and overheated with new private investors,” Whittemore said. “That hasn’t happened yet, but it seems to be starting (see, for example, Coinbase jumping to # 25 in free Apple apps).”
Just eight days into the new year, Bitcoin has already done it increased more than 40%, based on TradingView.com data. “The speed of the climb is pretty staggering – there’s no denying that,” explained Whittemore, adding:
“But I think what is happening is really an undervalued commodity, with an insanely limited offering by design that is finally being re-priced. Quite a few big buyers have been unlocked and there is not enough to go around. “
Bitcoin has one capped maximum delivery of 21 million coins, giving it a built-in aspect of scarcity. Be that as it may, the property is still less than 15 years old, with a value worth what people pay for it, comparable to gold, such as Mark Cuban has previously posited. Some experts, such as financial commentator Peter Schiff, still do stay skeptical about the trump, call it a bubble.