On Monday, Sven Henrich, the founder and the lead market strategist for northmantrader.com discussed bitcoin “rallying in the face of this crisis.” The technical analyst and market commentator highlighted four reasons why he believes bitcoin’s value surged — “Fundamental, Sentiment, Technical, [and] Safety trade.”
Northmantrader’s Founder Sven Henrich Describes Why He Thinks ‘Bitcoin Is Rallying in the Face of Crisis’
Bitcoin (BTC), which is currently trading at $44,256 per unit, soared Monday morning to an all-time high of $55,35 (EST). BTC’s price hasn’t been this high in USD value in roughly 39 days, since January 20, 2022. Bitcoin’s price rise sparked a number of conversationsDuring the day, on forums and social media. Peter Schiff, a gold bug and economist shared his thoughts on the market after the crypto’s price spiked.
“Gold and bitcoin are both up today,” Schiff tweeted. “But this move in no way implies a correlation. They’re rising for different reasons. The safe-haven asset of gold and the inflation hedge that it provides is up. Bitcoin is up because ARKK has gone up. Speculators in risk assets have been conditioned to buy the dips.”
Meanwhile, northmantrader.com’s founder and the lead market strategist, Sven Henrich, had an entirely different perspective about bitcoin’s rally on Monday. You can read the full article here. Twitter thread, Henrich described why he thought bitcoin was “rallying in the face of this crisis.” Henrich touched upon four main reasons in the Twitter thread with the first being “Fundamental.”
“Fundamental: Adoption [and]Acceptance continues to grow, both institutionally and on Ebay. I believe this trend will not stop. There is no sign of regression, but continued expansion,” Henrich noted. “Sentiment: The Ukraine crisis highlights how bitcoin can act as a support mechanism to raise funds when traditional avenues are cut off. Blockchain [and] decentralized money to become more relevant.”
Market strategists continued to:
Technical: Bitcoin fell to a higher level in February than the equities, indicating a positive divergence [and]Protection of a crucial trend. The beginning of the correlation decoupling process Safety trade: Some sanctioned funds may use bitcoin to secure their money (unconfirmed). It also creates risks as it allows for faster regulation (long-term positive/short-term risk).
Henrich Says ‘Bitcoin Is Here to Stay’ — Some Claim ‘Bitcoin’s Success Could Be Its Demise’
Henrich further added that the bottom line is that bitcoin “is here to stay” and the fiat monetary system further bolsters the fact. “The rationale for [bitcoin’s] existence finding more validation as the existing fiat world requires ever more intervention to stay afloat,” Henrich stressed in his Twitter thread.
One person replied to Henrich’s thread and asked: “If people stop putting money into bitcoin does it stay afloat? It’s almost like it requires constant injections of money.” Another individual respondedTo the question, he replied:
We have just discussed our fiat money system.
But, there are some individuals who do not want to be left behind. responding to Henrich’s tweets were inclined to believe that “BTC’s success will be its demise” and the “double-edged sword is starting to bite.” The individual left a link to an article that discussed Christine Lagarde, president of the European Central Bank (ECB), calling on global lawmakers to approve regulations in order to stop Russia from evading financial sanctions.
What do you think about Sven Henrich’s four reasons why bitcoin has rallied in the face of crisis? Comment below and let us know how you feel about the subject.
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