ByteTree Asset Management raised the market signal for Bitcoin from neutral to bullish as digital gold becomes a safe haven from losses in trading US stocks and Treasuries.
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“Bitcoin futures look good, especially when compared with the bond market crisis,” Morris wrote in the firm’s analytical report.
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He noted that the first cryptocurrency outperforms the US stock market while rising bond yields hurt other traditional sectors. When interest rates peak and the bond sell-off ends, digital gold will enter the fray, the analyst says.
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“First and foremost, Bitcoin is a genuine safe haven from Uncle Sam’s bonds,” Morris stressed.
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He noted that during the latest correction the asset held above the key $25,000 level, which from May 2022 to March 2023 served as a resistance.
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“If we can hold $25,000, which we are likely to manage to do, Bitcoin will be in a bull market, albeit inactive,” Morris says.
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Ledn’s chief investment officer John Glover, in comments to CoinDesk, also forecast growth for the leading cryptocurrency in the near term. However, he believes the move will be short-lived due to a lack of fresh money entering the market.
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“I believe Bitcoin prices in three months will be higher than today, because technically we have completed the sell-off. But I expect a sustainable uptrend in the second quarter of 2024,” he said.
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Analyst Edward Moya of OANDA was more pessimistic about the near-term prospects for digital gold. By his words, the asset remains in a ‘trap of its own making’ from $26,000 to $30,000.
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“What prevents Bitcoin investors from becoming more optimistic is that the selling in the bond market refuses to end, and this will harm many crypto startups,” he added.
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Over the past week the price of the cryptocurrency twice tested the $28 000 mark. At the time of writing the asset was trading around $27 750 (CoinGecko).
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Earlier in September, SkyBridge Capital founder Anthony Scaramucci forecast a bullish decade for Bitcoin. The investor suggested that the worst events of the current bear market are behind us.