Northmantrader.com‘s founder and lead market strategist, Sven Henrich, said of bitcoin “rallying in the face of this turmoil.” “Fundamental, Sentiment, Technical and Safety trade,” the technical analyst and market pundit said, citing four reasons why btc’s value has risen.
Sven Henrich, the founder of Northmantrader, explains why he believes “Bitcoin Is Rallying in the Face of Crisis
At 5:35 p.m. on Monday, the price of bitcoin (BTC) reached a high of $44,256 per unit (EST). Since January 20, 2022, BTC’s price hasn’t been this high in USD value in about 39 days. Throughout the day, the spike in Bitcoin’s price spurred a lot of discussions on social media and in forums. Peter Schiff, a gold bug and economist, expressed his thoughts on the market action when the price of the main cryptocurrency soared.
“Both gold and bitcoin are up today,” Schiff said on Twitter. “However, this shift in no way establishes a link.” They’re on the rise for many reasons. Gold is gaining popularity as a safe-haven asset and inflation hedge. The reason Bitcoin is up is that ARKK is up. Risk asset speculators have been trained to purchase the declines.”
Meanwhile, Sven Henrich, the founder and main market strategist at northmantrader.com, had a very different take on bitcoin’s surge on Monday. Henrich explained why bitcoin was “rallying in the face of this calamity” in a Twitter discussion. In the Twitter thread, Henrich mentioned four primary reasons, the first of which was “fundamental.”
“Fundamental: Adoption [and] acceptability continues to grow, as evidenced by Ebay, as well as institutional adoption. This route, in my opinion, will continue. Henrich observed, “There is no evidence of regression, only steady expansion.” “Sentiment: The Ukraine situation demonstrates how bitcoin may be used as a backup source of funds when traditional sources are unavailable. “Blockchain [and] decentralized money will gain traction.”
The market expert went on to say,
Technically, BTC made a higher low in February compared to stocks, indicating a positive divergence [and] defense of a major trend. Is the correlation decoupling process getting started? Trade-in Safety: Bitcoin might be used as a safe harbor for sanctioned money (unconfirmed). This also introduces danger because it provides a reason to speed up regulation (long-term benefit/short-term risk).
Also Read: News Crypto Today: Bitcoin Unable to Defeat Resistance Since $40K Seems Out of Reach With The Weekly Close
‘Bitcoin Is Here to Stay,’ says Henrich, despite some claims that ‘Bitcoin’s Success Could Be Its Demise
The ultimate line, according to Henrich, is that bitcoin “is here to stay,” and the fiat monetary system only adds to that reality. In his Twitter thread, Henrich emphasized that “the logic for [bitcoin’s] existence is finding more confirmation as the present fiat world demands ever more intervention to keep afloat.”
“If people stop putting money into bitcoin, does it stay afloat?” one person wondered in response to Henrich’s thread. It’s almost as though money has to be injected on a regular basis.” Another person replied to the question by saying:
Our fiat monetary system was simply described by you.
Some people reacting to Henrich’s tweets, on the other hand, seemed to believe that “BTC’s success will be its death” and that the “double-edged sword is beginning to bite.” The person included a link to an article about Christine Lagarde, the president of the European Central Bank (ECB), urging global politicians to pass legislation to prevent Russia from dodging financial sanctions.
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