Bitcoin on the upswing: Does the cryptocurrency overtake the S&P 500?
Bitcoin on the upswing: Does the cryptocurrency overtake the S&P 500?
The current Bitcoin price is around $ 65,700, which led to double-digit course gains in September. This means that the distance from the all-time high is only around $ 8,000. In view of these developments, the question arises whether investors should currently invest in Bitcoin instead of in the S&P 500. A deeper analysis shows that Bitcoin could currently be a promising system option.
An essential aspect of this consideration is the stability and strength of the US dollar. The US dollar index (DXY) observes the strength of the dollar compared to other important currencies. Historically speaking, Bitcoin benefits from a weakness of the DXY, which leads to higher prices. If the dollar loses value, Bitcoin becomes cheaper for international investors, which could boost demand.
macroeconomic influences and seasonal trends
Another crucial point is the interest rate policy of the US Federal Reserve. With decreasing interest rates, Bitcoin could attract additional buyers. Analyzes indicate that Bitcoin is currently undervalued by about 50 percent, a state that offered similar purchase opportunities in 2019, 2020 and 2023. These sales periods could therefore turn out to be ideal entry periods for investors.
seasonal trends also show that Bitcoin tends to cut weaker from May to September, but typically recorded an increase in October. This course suggests that now there could be the right time to invest in Bitcoin, especially compared to traditional stock systems such as the S&P 500.
An interesting point is also highlighted by Miles Germans on Twitter, who argues that Bitcoin could reach its all -time high promptly. The S&P 500 is currently 9 percent above its annual high, whereas Bitcoin is 11 percent below. If Bitcoin has the same price development as the stock markets, the price could increase to up to $ 81,000.
In summary, it can be said that the current economic conditions and seasonal patterns indicate that investors should consider to prefer Bitcoin compared to the S&P 500. The possibilities that result from the market conditions could offer an excellent opportunity to capitalize. This analysis and the associated forecasts should be understood as an impetus for further considerations for the composition of investment portfolios.It remains to be seen how the market develops, but the tendencies so far indicate that Bitcoin could possibly catch up. Information about this topic can be found here .
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