In the most recent episode of The Market Report, Cointelegraph analyst Marcel Pechman delves into Bitcoin’s (BTC) newest bounce at $25,000, which some analysts and influencers argue represents a short-term shopping for alternative. Pechman explains that Bitcoin’s inverse correlation with the U.S. Dollar Index has solely held for 40% of the earlier 20 months, that means it’s probably not a very good metric to anticipate value actions.
The present then shifts focus to a latest Glassnode report revealing that the quantity of BTC altering fingers is at its lowest since October 2020, citing buyers’ “apathy” and “exhaustion.” Pechman argues that bulls received drained after the United States Securities and Exchange Commission’s relentless motion to pursue Coinbase and Binance. Ultimately, Pechman disagrees that Bitcoin’s latest motion to $25,000 presents a possibility for patrons, provided that the short-term risk-reward ratio close to the present value degree is round 50:50.
For the present’s subsequent phase, Pechman analyzes the prediction made by Davis Hui, vp of Bitcoin miner Canaan, that BTC will hit $100,000 in 2024 based on the halving and a spot exchange-traded fund (ETF) approval. First, Pechman explains that BlackRock’s $10 trillion in assets is merely a mirage, as 55% is stuck in fixed-income investments and $2.8 trillion is already invested in other ETFs such as commodities, the S&P 500 index, global emerging markets and alternative investments.
Furthermore, Pechman raises the risk of current holders deciding to flip their positions previously bought at $60,000, $50,000 or even $40,000 if Bitcoin’s price were to shoot up, meaning the offer side is never predictable regardless of miners’ incentives. Lastly, Pechman explains that a spot Bitcoin ETF has been a dream for the past eight years, and nothing has changed to refute the SEC’s reasons for dismissal, namely stablecoin trading volumes and unregulated offshore exchanges.
Check out the latest episode of The Market Report, available exclusively on the Cointelegraph Markets & Research YouTube channel.
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