Home Cryptocurrency Bitcoin could be an alternative to US-listed companies but not in the short term

Bitcoin could be an alternative to US-listed companies but not in the short term

by Harry Garcia

Bitcoin Experiences Price Dip Below $27,000, Analysts Forecast Rebound

Bitcoin has recently dipped below $27,000, adding to the subdued sentiment in the cryptocurrency market. However, analysts are predicting a rebound based on historical figures. Additionally, the increase in unprofitable US-listed companies may prompt investors to explore Bitcoin as an alternative investment.

At the time of writing, Bitcoin (BTC) is trading at around $26,790, with a daily trading volume of $10.4 billion. Over the past seven days, the cryptocurrency has experienced a 3% loss. Crypto influencer Wise Advice, also known as Money Guru, has criticized analysts predicting further price declines for Bitcoin. He sarcastically stated that the price would drop to $19k-$20k, followed by a short-term bounce and a final leg to $12k. However, he later clarified that his post was meant to be satirical.

Crypto analyst Rekt Capital has observed Bitcoin’s retracement and drawn parallels with historical cycles. In 2015, less than 190 days before the Bitcoin Halving event, Bitcoin fell 25%, and a similar 38% drop occurred in 2019. This suggests that Bitcoin may experience short-term weakness before a potential rebound leading up to the upcoming halving event.

Markus Thielen, the author of ‘Crypto Titans,’ has also highlighted the relationship between the Federal Reserve’s monetary policies and Bitcoin’s price rally in 2019. When the Fed paused its rate hikes, Bitcoin experienced a significant surge in prices. Thielen suggests that the current macroeconomic situation, including the possibility of a downward economic trend in the US, could have a similar effect on Bitcoin’s price.

In a recent report, Goldman Sachs revealed that nearly half of publicly-listed US companies were unprofitable in 2022. This raises concerns about investor willingness to continue financing loss-making entities. Unprofitable firms account for approximately 10% of total business revenues, as well as 13% of capital spending and employment. If the US economy faces a market downturn and equities fail to deliver, investors may increasingly turn to Bitcoin and other cryptocurrencies as alternatives.

While Bitcoin currently faces short-term fluctuations, its resilience during previous macroeconomic shifts suggests that it could emerge as a compelling alternative to unprofitable US-listed companies. Investors may find investment opportunities in Bitcoin based on its past performance during similar economic conditions.

In conclusion, the recent price dip below $27,000 for Bitcoin has raised concerns in the cryptocurrency market. However, analysts remain optimistic about a potential rebound based on historical figures. As the number of unprofitable US-listed companies increases, investors may turn to Bitcoin as an alternative investment. The combination of these factors suggests that Bitcoin’s future may be more promising than its current price indicates.

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