Joe DiPasquale, CEO of BitBull Capital, while providing an update on the crypto market outlook discusses if bitcoin following gold to new 2020 highs.
Q2 2020 hedge fund letters, conferences and more
Bitcoin, Alike Gold And Silver, Now Benefitting From COVID-19
"After a prolonged consolidation period spanning most of June and July, Bitcoin sprung into action and crossed the critical $10,000 level yesterday. This move has may interesting implications and is notably in sync with the rally seen in gold and silver, both of which are benefiting from COVID-19 driven stimulus packages.
As gold trades near its all-time high reflecting decreasing market confidence in current economic policies, Bitcoin appears to present an attractive alternative investment opportunity for investors.
Technical indicators also seem to back the recent price action, as Bitcoin broke upward following nearly two months of consolidation which saw support remain steady at $9,000. Now, $10,500 remains the next major resistance, after which we can easily see $11,000.
Market participants may want to follow the FED’s meeting on Wednesday for policy announcements and keep an eye on gold, silver, and equities to assess market sentiments. Meanwhile, Bitcoin FOMO is currently on display as BTC dominance is rising again and alts are posting losses as BTC rallies today. The FOMO, coupled with increasing volumes indicates that this rally may finally push Bitcoin to conclusively beat yearly highs."
