Bitcoin: when will it stop growing? We spoke to a well-known industry player about it
Nathaniel Whittemore discussed Bitcoin’s price trajectory and what might be holding back bullish momentum
The price of Bitcoin (BTC) has recently been experiencing a volatile momentum, having more than doubled in the last two months after leaving behind by a Bitcoin Storm review its previous record highs of 2017. Podcaster Nathaniel Whittemore gave his opinion on methods to spot a macro top in this bull run.
The host of The Breakdown podcast told: „There really isn’t a macro top, in the sense that the conditions line up very well with the narrative.“
Whittemore then added:
„If the Democrats were to impose a raft of new fiscal measures and after a few months the velocity of money was still low and inflation limited, then some managers and institutions might decide to turn around, animated by the idea that inflation is not something to worry about: that could damage some of the thesis animating the bull run.“
Following the March crash, Bitcoin recovered faster than the US stock market, which had suffered a similar collapse
After completing its third halving in May, the asset trended sideways for most of the summer, but its overall macro-trend remained bullish. Coinciding with significant capital allocations by some large companies, the price of BTC rose sharply in the final months of 2020.
The US economic situation also plays an important role in this reasoning: the government has been working on a number of economic stimuli, as well as printing significant amounts of money.
Bitcoin’s previous macro tops of bull runs have come as a result of price corrections in an extended bullish outlook. A local top is a shorter-term price spike that occurs before a correction.
Whittemore pointed out:
„A local top could come if people get nervous that [BTC] is too unstable and the market has overheated with new retail investors coming in. […] This hasn’t happened yet, but it looks like we’re in an early stage (see Coinbase coming in at number 25 of the most downloaded free apps from Apple’s App Store).“
Just nine days into the new year, Bitcoin is already up over 40%, according to data from TradingView.com.
„The speed of this growth is pretty dizzying, there’s no denying that. What’s happening is that we have a hugely underpriced asset, with a constrained supply by design, that is finally being revalued. A lot of big buyers have moved in and there’s not enough to go around.“
Bitcoin has a maximum supply of 21 million coins, making it an inherently scarce asset. Be that as it may, BTC is still less than 15 years old: as Mark Cuban previously stated, Bitcoin is worth as much as people are willing to pay for it, as is the case with gold. Some experts, such as financial commentator Peter Schiff, still remain sceptical about Bitcoin and call it a bubble.