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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.
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.
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.