Bitcoin’s Potential
A historical link with the S&P 500 helped Kevin Svenson predict Bitcoin’s growth.
Bitcoin, at $41,425, may rise in months following S&P 500 trends.
Crypto trader Kevin Svenson compared Bitcoin (BTC/USD +0.24%) to the S&P 500 index for future predictions.
Svenson said in a Friday YouTube video that the S&P 500 predicts Bitcoin’s price spikes, especially record-setting ones.
“The S&P always leads Bitcoin on all-time high breaks. Since Bitcoin is 40% below its all-time high and the S&P is around its, this is positive “said.
Svenson examined prior events to determine when Bitcoin followed the S&P 500 to new highs.
He pointed to the second and third Bitcoin halvings in 2016 and 2020, when Bitcoin fell behind the S&P 500 in peak values.
“During the 2016 second halving, the S&P 500 reached a record high, and Bitcoin followed suit seven months later. It was seven months apart “said. The S&P broke its all-time high after the third halving in 2020, and Bitcoin did the same four months later.
Svenson claimed that Bitcoin may be approaching a milestone like the S&P 500 index’s 4,796 points in early 2022.
“Bitcoin is likely, I would say, less than half a year away, probably about four months away from its all-time high,” he added, predicting a rise.
Bitcoin was trading at $41,545.10, down approximately 4% in the past week.
WHAT SHOULD INVESTORS KNOW ABOUT BITCOIN ETFS?
Investors, according to Tapscott, must understand that all crypto investments can be unpredictable, but the volatility can be a “double-edged sword.”
“Something can go up a lot or down a lot in any period of time, so there’s the potential for gains but also for losses,” he went on to say. “I think that people need to appreciate that before diving in.”
Tapscott went on to say that he wants people become educated about cryptocurrency before investing, so they can make informed judgments about whether or not to invest.
WHAT ARE THE POSSIBLE RISKS?
When it comes to investing in cryptocurrencies, the largest risk remains volatility, and both experts agreed that investors should be comfortable with the volatile character of the assets before investing.
“It’s more volatile than other parts of the market so people need to be wary that this is not something you make into the core of your portfolio, it’s something that you can use as a complement to your portfolio and maybe offer some diversification,” said Taylor.
Tapscott also warned investors to be aware of any vulnerabilities or hacking of the organizations that provide these assets.
“That’s not something an investor can control; that’s up to the issuer, like BlackRock or Fidelity, to manage prudently,” he said, adding that while the chance is low, investors “may want to keep in mind.”
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A historical link with the S&P 500 helped Kevin Svenson predict Bitcoin’s growth.
Bitcoin, at $41,425, may rise in months following S&P 500 trends.
Crypto trader Kevin Svenson compared Bitcoin (BTC/USD +0.24%) to the S&P 500 index for future predictions.
Svenson said in a Friday YouTube video that the S&P 500 predicts Bitcoin’s price spikes, especially record-setting ones.
“The S&P always leads Bitcoin on all-time high breaks. Since Bitcoin is 40% below its all-time high and the S&P is around its, this is positive “said.
Svenson examined prior events to determine when Bitcoin followed the S&P 500 to new highs.
He pointed to the second and third Bitcoin halvings in 2016 and 2020, when Bitcoin fell behind the S&P 500 in peak values.
“During the 2016 second halving, the S&P 500 reached a record high, and Bitcoin followed suit seven months later. It was seven months apart “said. The S&P broke its all-time high after the third halving in 2020, and Bitcoin did the same four months later.
Svenson claimed that Bitcoin may be approaching a milestone like the S&P 500 index’s 4,796 points in early 2022.
“Bitcoin is likely, I would say, less than half a year away, probably about four months away from its all-time high,” he added, predicting a rise.
Bitcoin was trading at $41,545.10, down approximately 4% in the past week.