In today’s crypto news, Nicholas Merton from Data Dash discusses the recent moves in Bitcoin’s price and the key metrics that can help spot temporary market tops. Bitcoin has once again charted new relative highs, pressing up against the $30,000 level. However, with the current state of market uncertainty and the effects of inflation, the question remains whether Bitcoin can kick off another bull market and maintain its upward trend.
Equity markets, specifically the NASDAQ, are not setting new highs, and technology stocks are underperforming. The VIX, or Volatility Index, has been on an upward trend for over five years, signaling that something negative may happen in the financial markets. This, combined with the yield curve inversion, suggests that we may be entering a period of recession.
With less disposable income available to the general public, the prospect of Bitcoin continuing to rise towards $60,000, $90,000, or even $100,000 seems increasingly unlikely. As the market faces uncertainty and growing skepticism, investors should approach the current situation with caution and consider whether the current Bitcoin rally can be sustained in the long term.