Bitcoin – Talking Points
- Bitcoin[1] continues to hold support around $28,730 – trendline resistance overhead
- JP Morgan upgrades crypto and calls it a preferred alternative asset
- Guggenheim CIO Scott Minerd calls for Bitcoin to fall to $8k in Davos interview
Bitcoin Forecast: Neutral
Despite a broader rally this past week in risk assets, Bitcoin has remained muted and constrained to a tight range below the $30,600 mark. Of late, Bitcoin has traded hand in hand with the Nasdaq[2] 100, with some experts labeling Bitcoin as a ’24 hour Nasdaq proxy.” The pair however has decoupled this week, as Bitcoin posted 4 losing sessions from the last 5 despite the Nasdaq 100 snapping a 7-week losing streak. Is there a hangover from the recent stablecoin debacle, or is Bitcoin merely a laggard that will look to catch up in coming sessions?
Bitcoin to Nasdaq 100 Correlation
Chart created with TradingView
In a research note that came out this week, JP Morgan analysts said that Bitcoin’s fair value is roughly 30% above current levels, indicating the potential for “significant upside” in the crypto space. The note also revealed that crypto has become one of the investment bank’s preferred alternative assets, overtaking the likes of real estate and other commodities.
Despite JP Morgan’s bullish call for Bitcoin, Wall Street[3] appears to remain divided on where price should be. In an interview at the World Economic Forum gathering in Davos, Guggenheim CIO Scott Minerd called for Bitcoin to fall to $8,000. Minerd, a noted crypto bull, previously called for Bitcoin to reach $400,000.
Bitcoin 4 Hour Chart
Chart created with TradingView
A sluggish macro climate has hit risk hard but crypto even harder, with Bitcoin down roughly 40% this year. Roughly $3 trillion of
