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Next Bitcoin (BTC) Rally Could Be Huge. Blockstream CEO Explains Why

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Thu, 03/19/2020 - 07:51
Alex Dovbnya
Bitcoin (BTC) investors are flocking to crypto exchanges to buy this dip, according to Blockstream CEO Adam Back
Cover image via www.youtube.com
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Have you bought this Bitcoin (BTC) dip? According to Adam Back, the CEO of Blockstream, you might not have much time left. 

As of now, as investors remain in a wait-and-see mode, Back believes that this could change once their wire transfers get deposited into exchanges. This could be followed by a huge spike in the price of BTC. 

Related
Blockstream CEO Adam Back Claims That Satoshi Nakamoto Is One Person

Wait, does anyone still want to touch Bitcoin? 

Given that Back is a staunch Bitcoin maximalist who was quoted in Satoshi’s white paper, some might be skeptical of his prediction. After all, Bitcoin’s store-of-value status flew out the window after the 48 percent crash that took place last Thursday. It underperformed the S&P 500, gold, and pretty much every major asset. The only exception is oil, which is getting decimated by the double-whammy of the coronavirus crisis and the Saudi-Russian price war. 

However, Back’s argument is too compelling to ignore -- with stock shrouded in uncertainty and cash suffering from ‘huge’ quantitative easing programs, Bitcoin seems to be the safest bet. According to the Blockstream boss, it is ‘completely disconnected’ from the real economy that is about to take a massive hit.   

Related
Bitcoin-Hating Bank of England Governor Wants to Pump 'Unlimited' Money into Economy

Forget the halving. It’s all about decoupling now 

For more than a year, the Bitcoin halving had been the main bull narrative given the coin’s historic price performance after such events. Now, the focus has shifted to decoupling from the U.S. stock market

As of recently, BTC has been performing as a high-beta proxy for the S&P 500. Given that U.S. equities are caught in the worst sell-off since the Great Depression, this kind of correlation could be detrimental for the flagship cryptocurrency. 

The fact that BTC held steady during yesterday’s stock market sell-off gave bulls a glimpse of hope, but it remains to be seen whether the coin will manage to turn into a completely uncorrelated asset.  

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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