Bitcoin

Did the $ 50,000 make Peter Schiff buy BTC? 5 things to consider about Bitcoin this week

Bitcoin (BTC) hit a new high over the weekend in the latest installment of his spectacular 2021 bull move.

With the largest cryptocurrency nearing $ 60,000, Cointelegraph is researching the factors to consider when forecasting this week’s price action.

BTC price versus DXY (orange). Source: trade view

The investor watches the “restart” of the stock market

Stocks showed no sign of their never-ending uptrend reversing on Monday Buyers kept coming back to the market.

Did the $ 50,000 make Peter Schiff buy BTC?  5 things to consider about Bitcoin this week
Did the $ 50,000 make Peter Schiff buy BTC? 5 things to consider about Bitcoin this week

Despite warnings that a bubble may burst, Markets hit all-time highs as expectations of global economic recovery sparked excitement.

In the United States, hopes of President Joe Biden’s $ 1.9 trillion stimulus package remained the basis for growth. Treasury Secretary Janet Yellen suggested this last week The monetary mechanism, which would include a third round of stimulus checks worth $ 1,400, would be finalized by Congress in the coming weeks.

“Everyone is playing with the prospect of better economic growth, the prospect of more fiscal stimulus.”Adrian Zuercher, Head of Global Asset Allocation at UBS Wealth Management, told Bloomberg.

“It is normal for nominal returns to trend higher, stocks to trade higher, and commodities based on better economic prospects.”

While Bitcoin has exploded in line with stocks since the March 2020 crash, not everyone has been as bullish.

In new comments Monday, investors and hedge fund managers Michael J. Burry provided a burdensome forecast for the global economy, in which he found that the stock markets had revised significantly.

“People say I didn’t warn the last time. I did, but no one listened to me. So I’m warning you this time And yet nobody listens. But I’ll have evidence that I warned “, tweeted.

In conversation with CNBC, the founder, chief information officer and CEO of Ark Invest, Cathie Wood added that a “revaluation” would likely be the result of a continued sharp rise in fees..

Without a certain deadline, The risk was clearly recognized that this March would repeat the past, which eventually allowed Bitcoin and Ether (ETH) to outperform.

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Bitcoin Macro Correlation Diagram. Source: Digital Assets Data

The dollar strength is doomed to fail

A short-term continuation of Bitcoin could be mitigated by the mean behavior of the US dollar currency index. (DXY), which has bounced back from its lows in the past few days.

Traditional, A rally in DXY puts pressure on BTC / USD and the index spent most of February falling.

As reported by Cointelegraph, Long-term projections assume that the dollar will overall weaken over time, in large part due to the huge expansion of the money supply by the Federal Reserve.

“”The dollar has many other drawbacks, and our long-term outlook is dollar weakness, not strength. of the dollar, “Steve Englander, research director at Standard Chartered, told Reuters in early February.

An accompanying group revealed this Only 13% of the participants expected the dollar to rise within three months, while the vast majority expected it to decline or stagnate in value.

“”Much of the dollar’s state of emergency has to do with its scarcity“Added Englander.

“The perspective now is that there will be no shortage of dollars and indeed there will be enough as far as the eye can see.”

1-day candlestick chart of the US Dollar Currency Index (DXY). Source: TradingView

Tickets include a whale sale warning

In the case of Bitcoin, the signs of a possible pullback showed on Monday in the form of a surge in inflows..

As stated in the on-chain monitoring resource CryptoQuant, Institutional Twins have seen gigantic total inflows of BTC 28,004 ($ 1.63 billion), suggesting that a major investor plans to sell or hold funds ready for sale when prices fall..

“Watch out for the downside risk of whale dumping”CryptoQuant was added in the comments on Telegram subscribers.

BTC exchange entries for BTC / USD. Source: CryptoQuant

Cointelegraph reported that last week The stable coin balances on the exchanges had hit an all-time high, causing BTC / USD to set a new record: $ 58,312 at Bitstamp. This happened while Coinbase’s so-called premium, the price difference between Coinbase and Binance, was negative.

To the CEO of CryptoQuant, Ki Young Ju, The nature of the outcome was cause for concern despite the resulting euphoria.

“”One thing that makes me uncomfortable about this spike in $ BTC is a negative Coinbase premium“, tweeted.

Purchasing power does not seem to come from American institutional investors, but from coinage whales and private investors. No healthy upward move without USD spot entries. “????

Altcoins could soon take a step forward

In the event that bitcoin falls behind, it is expected that altcoins could again be the focus of attention. this week.

The weekend saw mixed results for the major cap tokens, with some making gains while others stalled.. On Monday, Bitcoin’s unsafe behavior came about as The largest altcoin ether had already lost 2% within 24 hours after reaching $ 2,000 for the first time.

Polkadot (DOT), Cardano (ADA) and Chainlink (LINK) also showed negative behavior on this day, while XRP gave the surprise with a 14% increase to $ 0.60.

“Money is flowing in Bitcoin right now”, He saidPopular retailer Rekt Capital visited its Twitter followers last week.

â € œBut considering how altcoins are in the very early stages of their macro bull market, rest assured … Altcoins are about to make a comeback. “

Bitcoin’s market capitalization rose slightly on Monday up to 61.4%.

3 month dominance chart of Bitcoin’s market capitalization. Source: CoinMarketCap

Peter Schiff and Bitcoin: “If I buy, I’m out”

It might be time the bitcoin bulls break out while they can because One of the biggest critics of cryptocurrency could buy a huge amount.

In a downright cryptic tweet about the gold beetle weekend Peter Schiff asked when to look to sell everything he could buy.

“”If you’ve actually bought bitcoin, then how do you know when to sell it? If your answer is never to sell, why should you buy? ” asked.

I can’t change it as traders won’t accept it. I have to sell it first, either myself or through a broker like Bitpay. But I’m not talking about small amounts. When do I sell to take profits or reduce my losses?

Schiff already tried bitcoin and complained about the loss of his wallet password, but It made a name for itself by shaming its economic base and promoting gold as the only option to avoid inflation of fiat money.

Interest in a real or not real Hodling has kept the trading community in checkwho viewed it as a classic sign of a bull market spiraling out of control.

“Little by little and then suddenly. When you buy, I’ll be out.”, answeredCryptocurrency trader Scott Melker.

As Cointelegraph reported last year, $ 50,000 Bitcoin Could Be Event That “Triggers” Schiff’s Investment.

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