Bitcoin’s been lagging behind the stock market lately, and some analysts think that could be a good thing.
Bitcoin took a tumble in early July, losing 10% of its value. While it’s recovered a bit, it’s still trailing behind the S&P 500 and other stocks. This is unusual, as Bitcoin and the stock market have typically moved in the same direction over the past few years.
What’s going on?
- Government sell-off: The German government dumped its entire Bitcoin stash, worth $2.9 billion, which contributed to the price drop.
- Mt. Gox repayments: The bankrupt crypto exchange Mt. Gox started paying back creditors, with many of them expected to sell their Bitcoin and Bitcoin Cash holdings.
The silver lining:
Analysts believe this lagging performance could be a sign that Bitcoin is poised for a rebound. They’re calling it a “bullish catch-up period,” meaning Bitcoin could soon make up for its recent losses and potentially even start a new bull run.
Other analysts are also optimistic.
Rekt Capital, a crypto analyst, has noticed that Bitcoin has been trying to break out of a downtrend that’s been going on for about a month and a half. If it manages to break through, it could see a significant price recovery, potentially reaching $71,000.
While Bitcoin is still down compared to its peak, there are some signs that things could be looking up. The recent price dip might be just a temporary setback, and Bitcoin could be ready to make a comeback. /p>
