Which prediction we have as Bitcoin (BTC) shows admirable resilience in the broader economic environment, even under adverse conditions, investor attention is increasingly turning to its use cases and deviations from traditional markets such as stocks.
According to Bianco Research president and macro strategist Jim Bianco, Bitcoin needs to develop a “real use case.” Then it can continue growing and peaking without traditional market intervention.
Bitcoin prediction for Stock Market
Regarding the current correlation with traditional markets, Bianco noted that “the current market setup now needs the [money] printer to re-initiate. Then Bitcoin has a chance to get back to $70,000, and that’s not good”.
In his view, the current use case for digital assets is flawed. Because people often buy them just because they go up a lot, then convert them to traditional fiat currencies and buy a Lambo, for example. That’s basically what can be done with them now. This can lead to prediction through Bitcoin.
However, Bianco expressed the view that developing actual use cases and “decoupling” or creating a different ecosystem from TradFi (traditional finance) would support the growth of the cryptocurrency sector. The reason is apparent, according to the words:
When you create your use case, you can see the divergence and the correlation go to zero, which would be good. Because then, when the correlation drops to zero, it doesn’t need the [money] printer for a new high to come.
In his view, this would require developing “a patent system where crypto never leaves the system. According to him, it does not yet exist on a larger scale.
Financial System Disadvantages
In addition, Bianco believes that the current financial system is dysfunctional. According to him, it doesn’t work, and people need something else. That something else could be Bitcoin BTC and other cryptocurrencies. He then concluded his thoughts with the words:
I think the next bull market is going to be. I called it an ‘adoption bull market.’ People will say, ‘oh yeah, buy Bitcoin because apart from holding it and watching it go up, you can do something with it other than hold it and watch it go up.
If we ever get to that point, the word Moon might not be wishful thinking.
While Bitcoin BTC correlation with other traditional markets may appear to be decreasing due to what is happening in the markets, it is better to remain cautious. The risk of reduced liquidity due to interest rate hikes continues to pressure risk assets, including cryptocurrencies.