A popular crypto analyst, Jason Pizzino, is predicting a potential Bitcoin (BTC) price drop if the stock market’s recent recovery loses steam.
Pizzino’s Prediction: A Bitcoin Correction
Pizzino, who boasts a large YouTube following, points to the historical relationship between Bitcoin and the S&P 500. He believes the S&P 500 might dip in the second quarter of the year, pulling Bitcoin down with it. His analysis is based on observing past market patterns over the last 20 years, noting similar dips in April and May. He summarizes that while the market might be a bit volatile through the second and third quarters, a correction for Bitcoin in the second quarter is likely.
A Silver Lining: The US Dollar’s Influence
However, Pizzino also sees a potential upside. He highlights Bitcoin’s inverse relationship with the US dollar index (DXY). A weakening US dollar could boost Bitcoin’s price, as investors might view it as a safe haven asset, similar to gold. Since the DXY has recently paused its decline, Pizzino suggests this could lead to further Bitcoin gains after any potential correction.
Current Bitcoin Price and Disclaimer
At the time of writing, Bitcoin is trading around $97,346. It’s important to remember that this is just one analyst’s opinion, and the cryptocurrency market is inherently risky. Always conduct your own research before making any investment decisions.