The Bitcoin (BTC) price "breakout or bubble top" is not here, seasoned investor, markets commentator, and podcaster Jordi Visser shares in his recent X thread. Even with the fact that Bitcoin (BTC) managed to double its price for the second year in a row, it is very far from what looks like a bubble for tech companies.
No, BTC is not a bubble, investing veteran Jordi Visser says
For instance, the Bitcoin (BTC) price macro chart looks too different from the "Internet bubble" of 1990s that registered zero years in red. Neither overhyped MicroStrategy journey in crypto should be treated as a signal of a "bubble phase."
Instead, Visser recalled 2020-2021 NFT and early meme coin frenzies as textbook examples of what bubbles might look like in crypto. They were accompanied by euphorias in media and splendid performances of all classes of altcoin assets.
- Altcoin statistics of this cycle also confirm that we are very far from reaching the top.
- The fear and greed index, a crucial indicator for the altcoin segment, set a multi-year low in recent weeks right before the Bitcoin (BTC) jump over $100,000.
- Ethereum (ETH) was not so cheap against Bitcoin (BTC) since April 2021, despite being back over $4,000.
All eyes on the Magnificent 7
Also, we are still in the middle of processes of capital injection into spot Bitcoin and Ethereum ETFs in the U.S. and Hong Kong. This monstrous inflow is also far from exhaustion, recent data says.
Despite all controversy and regulatory hostility, crypto ETFs became the fastest-growing products in the entire ETF history.
That being said, to register a proper "bubble" status, the Bitcoin (BTC) price needs to rally against MAG7, an index of top tech stocks including Apple, Microsoft, Alphabet, Amazon.com, Nvidia, Meta Platforms, and Tesla.
This particular process — parabolic growth of the BTC/MAG7 rate — marked the top for the last two Bitcoin (BTC) price cycles, seasoned CIO concluded.
This article was originally published on U.Today
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Analysis:
In this insightful piece by the renowned investment veteran Jordi Visser, we gain crucial insights into the current state of the cryptocurrency market, particularly focusing on Bitcoin (BTC) and Ethereum (ETH). Here are the key takeaways from the article:
- Despite Bitcoin’s recent price surge, it is far from being in a bubble phase, as evidenced by historical data and comparisons to past market bubbles.
- The recent NFT and meme coin frenzies serve as examples of what bubbles might look like in the crypto space, highlighting the current market’s stability.
- Altcoin statistics and the fear and greed index indicate that we are not yet at the market’s peak, suggesting further growth potential.
- The influx of capital into spot Bitcoin and Ethereum ETFs in the U.S. and Hong Kong signifies ongoing market expansion and investor interest.
- To reach a true "bubble" status, the Bitcoin price must rally against the MAG7 index of top tech stocks, indicating a critical milestone in market cycles.
Overall, this article provides valuable insights for both seasoned investors and newcomers to the cryptocurrency market, shedding light on key indicators and trends that can shape future investment decisions. Understanding the dynamics of the market and recognizing potential bubble phases is essential for informed and strategic investment practices.