Despite ongoing crypto winter, there is still a hope that Bitcoin may outpace SPX in the upcoming future.
Entering the year 2022 with the price level of $47k, Bitcoin has since lost its value by 57.6%. As a consequence of this downtrend, the questions are being raised about the possible future behavior of the Premier cryptocurrency Bitcoin.
Following the launch of Bitcoin, the asset has shown a strong correlation with the stock market. While this correlation doesn’t seem to affect Bitcoin much, the crypto ommunity is not really fond of it.
For years, analysts are making projections about the end of Bitcoin’s correlation with the stock market. In one such similar attempt crypto analyst and founder of Ledgart, Kaleo, have projected that looking at the DeFi (Decentralized Finance) assets current behavior it seems like that the crypto market ‘should give it a clear shot to outpace SPX back to the 2017 ratio ATH and higher.’
Kaleo also noted that besides the fact that Bitcoin is performing strong against the USD, it is on the brink of breaking above a key resistance in the lower accumulation range. Significantly the analyst highlighted that Bitcoin is stuck below the range for the past four months.
Not only does #Bitcoin look solid vs USD, it’s on the verge of breaking above a key resistance in the lower accumulation range it’s been stuck in the past four months – which should give it a clear shot to outpace SPX back to the 2017 ratio ATH and higher. pic.twitter.com/vNvIm2VLMQ
— K A L E O (@CryptoKaleo) October 14, 2022
Similarly, Gareth Soloway, chief market strategist at InTheMoneyStocks.com, has also opined on Bitcoin’s correlation with stocks. Soloway stated that as per his estimation Bitcoin is not going to detach itself from the stocks anytime soon. Soloway also predicted that Bitcoin could hit the low of $3,500 during the current phase. Notably, he had previously made a projection that in case of another correction phase Bitcoin could go as low as $12,000.
Soloway had mentioned that as the USD continues to stand above the 20 years’ high, Bitcoin will continue to struggle as a strong USD affects risk assets adversely.