Economist Henrik Zeberg, specializing in macroeconomics, is foreseeing a significant move for Bitcoin (BTC) and other risk assets, characterizing it as a potential “monster” move. His analysis is centered around the BTC/SPX Ratio, an indicator that evaluates Bitcoin’s performance relative to the S&P 500 index (SPX).
BTC/SPX Ratio Signals a Significant Move
Despite the recent fluctuations and concerns surrounding the crypto market’s sustainability, Zeberg maintains a bullish outlook on Bitcoin. He believes that the BTC/SPX Ratio provides compelling evidence that the uptrend for Bitcoin is still in its early stages, presenting opportunities for accumulation despite the recent downturn in September.
The BTC/SPX Ratio is a metric that assesses the comparative performance of Bitcoin and the stock market, represented by the S&P 500 index (SPX). A rising ratio indicates that Bitcoin is outperforming the stock market, while a declining ratio suggests that Bitcoin is underperforming in comparison. The current trend shows that Bitcoin is surpassing the stock market, suggesting its superior performance.
Zeberg shared a chart on October 3, highlighting that a “bull” signal was activated in February 2023, which preceded a substantial Bitcoin price rally. By July 2023, Bitcoin had surged to approximately $32,000. Although there has been a cooling-off period since then, Bitcoin is still trading above the February highs, confirming the ongoing uptrend.
Drawing parallels to a similar bull signal between April 2019 and May 2021, which preceded a 6X surge in Bitcoin’s price, Zeberg’s assessment suggests that Bitcoin and other risk assets could experience significant gains in the coming months.
Will Bitcoin Reach $200,000 This Bull Run?
It remains speculative whether Bitcoin will reach such high levels during this bull run. The BTC/SPX Ratio indicator lags and does not precisely pinpoint market peaks or bottoms.
For instance, the last bear signal in May 2021 occurred months before Bitcoin’s peak in November 2021. Therefore, while the bull signal appeared in early February 2023, it is uncertain whether there will be another downward movement before prices rise or if bears will push the price back to 2022 lows.
If buyers regain control, and if the BTC/SPX Ratio indicator proves accurate, the potential upward trajectory of Bitcoin is difficult to predict. If the past bull run serves as a guide, Bitcoin could experience a 6X surge in price, possibly surpassing $200,000 during this market cycle.
Please note that these predictions are speculative, and the cryptocurrency market is highly volatile and subject to rapid fluctuations.