In the meantime, Soloway pointed out that Bitcoin might bottom in a year before rallying again, noting that the cryptocurrency, alongside gold, will likely outperform.
Bitcoin’s divergence from stocks
He noted that as Bitcoin matures, it will likely be treated as gold with the asset decoupling from stock. The analysts also cautioned the divergence from stocks would not come anytime soon. Soloway added that central to Bitcoin’s future growth away from the prevailing macroeconomic factors would be confidence from institutions to get involved in the space. However, he believes institutional input relies heavily on the regulatory framework because it brings a sense of comfort among investors.
The dollar’s impact on Bitcoin
As reported by Finbold, Soloway projected that Bitcoin was in line of correcting towards $12,000, citing the dollar impact. In his view, the extended strong dollar performance can kill all risk assets like Bitcoin. Elsewhere, Bitcoin has recorded minor gains after tanking in the wake of U.S. inflation data. By press time, the asset had regained the $19,000 spot, trading at $19,600 with gains of 3% in the last 24 hours. Watch the full interview below: Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
