The Long-Term Prospect of Bitcoin Looks Good. Part of the perfect storm for the benchmark digital currency is stimulus packaging releasing more money into the global economy and the continued decline of the USD.
The more the dollar falls, the more relative value it imparts into the digital currency due to its limited, 21 million BTC supply. This same economic environment has also helped gold to surge significantly higher, as it recently hit a new all-time high.
Bitcoin shares several major similarities with gold, and the digital asset is considered digital gold. However, Pal said that Bitcoin is even breaking out against gold, or at least it is about to. If BTC can capture even a little fraction of the market cap of gold, it would start its uptrend towards some of the astronomical long-term price predictions that many expect.
Max writes about blockchain projects and regulation with a special focus on United States and China. He joined Smarterum after years of writing for various media outlets.
- Bitcoin’s recent uptrend is still in “super early days” of the next major move
- Bitcoin still has a long way to go, Raoul Pal
- Bitcoin is gradually breaking out of gold
The price of Bitcoin is on fire again, after trading sideways for about three months. Bitcoin made a run through the $10k hurdle point and out of its downtrend, which paved the way for more gains to over $12k.
Despite the recent heavy upside move, one economist is saying that this is just the “super early days” of the next move of Bitcoin. According to the monthly digital currency chart, this rally has a very long way to go.
Bitcoin’s Breakout Still Has a Long Way to Go – Raoul Pal
Crypto traders, analysts, and investors are all trying to figure out if the bull market of Bitcoin is finally here. The world’s most dominant digital currency is currently experiencing a great storm for its rise back to mainstream stardom. The bear market has done the best it could on Black Thursday, and the higher low on the long-term timeframes of the digital currency confirmed a new uptrend is here. The halving of BTC is now in the past, and all post-halving dumps would have been completed by now.
Stock-to-flow models based on the scarcity of the digital currency shows that Bitcoin is wildly undervalued. This is something that Raoul Pal – a global macro investor and economist – believes that institutional investors would soon come to realize, just as retail investors recognized it years ago.
Pal said that the monthly price chart of Bitcoin only broke through the hurdle recently. He added that the recent uptrend is still “super, super early days” for the next uptrend of the digital currency. According to Pal, this is just the beginning, and the next uptrend of the digital currency has a very long way to go in terms of “time and price.”
