Bitcoin is refusing to make any major corrections while the Spot Bitcoin ETF remains on the horizon. $BTC is also thriving at the expense of the weak US dollar.
A buoyant bitcoin
Back above $43,000 again, $BTC is just not going to stay down for long. There is just too much going on in the background to benefit $BTC that will not let the king of the cryptocurrencies make the kind of 30% pullback that a year-long climb to the upside would probably demand.
Of course, the biggest impetus may well be that of the impending potential Spot Bitcoin ETF. That said, a weak dollar, a failing banking system, and markets looking ahead to possible Fed rate cuts, are all fuel to the rocket ship that is bitcoin.
Fiat weakness
Having said that the US dollar is weak, this weakness is being measured against other fiat currencies by way of the DXY Index, as the dollar has seen a 10.7% fall compared with a basket of other fiat currencies since late September this year.
Given that every single fiat currency throughout the history of the world has gone to zero, it’s probably academic right now to pit them against each other. All that needs to be seen is that bitcoin rises against all of them, and given its known and scarce supply, it simply must continue this rise over a longer time frame.
The rise and rise of $BTC
Source: Trading View
The rise and rise of $BTC since the beginning of this year has been incredible to witness. 175% thus far would be a tidy profit for those who hold $BTC, but more to the point, it would have negated the terrible ravages to the pockets of those who hold fiat currency in the bank and who suffer from inflation and debasement of their currency.
$BTC to range
Source: Trading View
Zooming in, it can be seen that $BTC did break out of the downward trend, but has now come up against resistance. It must also be borne in mind that even though the upper CME gap at $42,450 has been closed, the gap below still remains, which could mean that $BTC will continue to range.
Large corrections will happen
All the above being said, $BTC will eventually probably suffer more than one decent correction of 30% to 40% as its bull market unfolds. Investors need to accept that the nascent asset class that is bitcoin will undergo a lot of volatility until the time when enough wealth and liquidity provides the stability to make this volatility a thing of the past. Holding $BTC rather than trading it might be the safer way to go.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
