Bitcoin and Risk Assets Poised for a “Monster” Move, Says Macro-economist
According to macro-economist Henrik Zeberg, Bitcoin (BTC) and other risk assets are gearing up for a significant move, with the trend still in its early stages. Zeberg’s analysis is based on the BTC/SPX Ratio, which compares Bitcoin’s performance to the S&P 500 index.
BTC/SPX Ratio Indicates Potential Upside for Bitcoin
Despite recent market fluctuations, Zeberg remains optimistic about Bitcoin. He believes that the BTC/SPX Ratio provides strong evidence that the uptrend for Bitcoin is just getting started. The current dip in September could present buying opportunities for traders.
The BTC/SPX Ratio measures the relative performance of Bitcoin and the stock market by comparing their spot prices. A rising ratio suggests that Bitcoin is outperforming stocks, while a declining ratio indicates underperformance. Based on Zeberg’s chart from October 3, a bullish signal was triggered in February 2023, preceding a substantial rally in Bitcoin’s price.
Potential for Strong Gains Ahead
In previous instances when a similar bull signal was observed between April 2019 and May 2021, Bitcoin surged by 6X, while the S&P 500 saw a more modest increase of 41%. Zeberg’s assessment using the BTC/SPX Ratio suggests that Bitcoin and other risk assets could experience significant gains in the coming months.
Uncertainty Surrounding Market Peaks and Bottoms
While the BTC/SPX Ratio provides insights into potential trends, it is important to note that it may not precisely capture market peaks or bottoms. For example, the last bear signal in May 2021 occurred months before Bitcoin reached its peak in November 2021. Therefore, it is uncertain whether there will be another dip before prices rise or if bears will push the coin back to previous lows.
Potential for Bitcoin to Surge Beyond $200,000
If buyers take control and the BTC/SPX Ratio indicator is accurate, it is difficult to determine how high Bitcoin will rise. If the previous bull run is any indication, Bitcoin could surge by 6X, potentially pushing its price beyond $200,000 in this bull cycle.
Hot Take: Bullish Outlook for Bitcoin’s Future
Macro-economist Henrik Zeberg predicts a “monster” move for Bitcoin and other risk assets based on his analysis of the BTC/SPX Ratio. Despite recent market fluctuations, Zeberg believes that the uptrend for Bitcoin is just beginning and that the current dip presents buying opportunities. However, it is important to consider the uncertainty surrounding market peaks and bottoms. If buyers regain control and the BTC/SPX Ratio indicator proves accurate, Bitcoin could potentially surge beyond $200,000 in this bull cycle.
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