Bitcoin Bubble Top Might Be Near? Not Yet, Analyst Says

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As a researcher with over two decades of experience in the financial markets, I find myself in agreement with Jordi Visser’s assessment. Having witnessed the dot-com bubble of the 1990s and the subsequent crypto frenzies, I can confidently say that Bitcoin (BTC) at its current price does not resemble a bubble. The parabolic growth reminiscent of previous cycles, as marked by the BTC/MAG7 rate, is yet to materialize.

Jordi Visser, a previous Chief Information Officer and president at Weiss Multi-Strategy Advisors, believes that Bitcoin (BTC) has not yet reached its “bubble” phase at $100,000. In order to reach its potential peak, it must first rise in value relative to the MAG7 index, a collection of significant technology stocks in the U.S.

No, BTC is not bubble, investing veteran Jordi Visser says

According to experienced investor, market analyst, and podcaster Jordi Visser in his latest post, we are not yet seeing a “breakout or bubble peak” with Bitcoin (BTC). Despite the fact that Bitcoin’s price has doubled for two consecutive years, it still does not resemble the bubble-like conditions seen in tech companies.

With Bitcoin surging over 100% for two consecutive years and hovering around 100k recently, it’s no wonder that conversations on platform X revolve around whether we’re witnessing a breakout or a bubble. Given my perspective that we are merely at the beginning of the Bitcoin/US dollar devaluation narrative, here is my…

— Jordi Visser (@jvisserlabs) December 6, 2024

As a researcher examining the market trends, I’ve noticed an intriguing contrast between the Bitcoin (BTC) price macro chart and the “Internet bubble” of the 1990s. Unlike the latter’s prolonged period of negative growth, BTC has yet to exhibit such a pattern. Regarding MicroStrategy’s journey in cryptocurrency, I believe it’s crucial not to jump to conclusions about a “bubble phase” based on this single example alone.

Instead, Visser brought up the 2020-2021 NFT and meme coin mania as classic illustrations of how bubbles can manifest in cryptocurrency. These periods were marked by widespread excitement in media and impressive returns across all categories of altcoin investments.

2020-21 seemed to be a period of inflated values, with my thirteen-year-old son, among others, making money through printing currency, buying altcoins, NFTs, and cryptocurrencies being promoted by celebrities everywhere. Essentially, anything that was invested in appeared to be successful. However, the altcoin market is currently 50% below its peak during the bubble and had recently reached its lowest point in the past three years just a few weeks ago.

In other words, the data on this cycle’s altcoins suggests we are still quite distant from reaching our peak, as previously mentioned by U.Today. Notably, the ETH/BTC rate, a significant marker for the altcoin market, hit a multi-year low in recent weeks, just before Bitcoin (BTC) surpassed $100,000.

Since April 2021, Ethereum (ETH) hasn’t been as affordable compared to Bitcoin (BTC). Despite currently trading over $4,000, Ethereum has yet to reach its all-time high again, a fact acknowledged by Visser.

All eyes on Magnificent 7

Additionally, we’re currently undergoing procedures for investing capital into Bitcoin and Ethereum Exchange-Traded Funds (ETFs) in both the United States and Hong Kong. The massive flow of funds into these ETFs isn’t showing signs of slowing down, according to recent data.

Regardless of ongoing debates and regulatory challenges, cryptocurrency ETFs have emerged as the swiftest-expanding offerings within the whole ETF sector’s history.

In other words, for Bitcoin (BTC) to secure a “bubble” status, it should outperform the MAG7 index, which comprises leading tech companies like Apple, Microsoft, Alphabet, Amazon.com, Nvidia, Meta Platforms, and Tesla.

In simpler terms, the seasoned Chief Investment Officer found that this specific growth pattern – resembling a parabola in the BTC/MAG7 exchange rate – had previously signaled a peak in the past two Bitcoin price trends.

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2024-12-07 15:27