August 11, 2020
The price of Bitcoin is on fire again, after spending three full months trading sideward. After breaking through resistance at $10,000 and out of its downtrend, the asset quickly sped to over $12,000.
Although, one economist says that this is just the “super early days” of Bitcoin’s next uptrend. And the monthly crypto chart displays that this convention has a long way left to go.
The Early Days of Bitcoin’s Bull Market Are Here, According To Raoul Pal
The investors, traders, and analysts are figuring out if the Bitcoin’s bull market is finally here.
The earliest cryptocurrency is now undergoing a perfect storm for its rise back to conventional stardom. The bear market came to its thriving decision on Black Thursday, and the advanced low on long-term timeframes confirmed a new uptrend is here.
Bitcoin’s halving is now in the past, and any post-halving selloff would be taking place by now. A stock-to-flow model created on the asset’s digital shortage claims the asset is wildly underestimated.
Economist and global macro investor Raoul Pal think that this is something the institutional investors will soon come to realize, just as retail investors have before.
According to Pal, the Bitcoin monthly price chart only just recently broke through resistance, and that the recent uptrend is still “super, super early days” for the cryptocurrency’s next uptrend.
Pal says it’s only just the start, and Bitcoin’s next climb has a long way to go in terms of “time and price.”
Digital Gold Narrative and Institutions will Drive Long-Term Valuations.
Part of that flawless blizzard for Bitcoin is the dollar’s constant drop and stimulus packages propelling money supply into the global economy. The more the dollar inflates, the further relative value it imparts into the asset due to its limited, 21 million BTC supply.
The same sort of economic atmosphere has been a significant increase for gold, recently setting a new all-time high. Bitcoin is often considered electronic gold, due to the cryptocurrency sharing numerous critical similarities with the valuable metal and haven asset.
But even Bitcoin is flouting out against gold, said Pal. Or at least it is about to. Gold is facing its first significant pullback since breaking its record, just as Bitcoin drives through its most substantial resistance yet.
The breakout could be a sign of another new trend establishing: gold bugs moving their assets or profits into Bitcoin.
Gold investors in Hong Kong have begun transferring their gold offshore due to increasing security concerns. Bitcoin without a physical equivalent makes it a better and more protected store of value.
Pal says it is for all of these critical reasons and more, why institutions will soon wise up, and understand Bitcoin’s massive potential. As soon as they do, capital will come pouring into the asset’s market cap like never previously.
If Bitcoin can seize even a small percentage of gold’s market cap, the asset will soon initiate its uptrend towards some of the astronomical long term price calculations that many anticipate.