Bitcoin

Bitcoin Price Action Sends Warning Signal of Stock Market Selloff Soon

Published

7 months ago

23 June, 2024

BlockChainGuardian Staff

Bitcoin Price Action Sends Warning Signal of Stock Market Selloff Soon

Bitcoin’s 10% sell-off since June 7 signals a wake-up call for the broader stock market.
Stifel strategist Barry Bannister highlighted a strong correlation between bitcoin and the Nasdaq 100.
Bannister said he expects a summer correction in stocks, influenced by higher interest rates for longer.

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Bitcoins The 10% sell-off since June 7 is sending a warning signal to the broader stock market, according to Stifel strategist Barry Bannister.

In a note on Wednesday, Bannister highlighted the strong correlation between bitcoin and the Nasdaq 100 since 2020, as cryptocurrency shares characteristics of a risky speculative asset, it more than behaves like “digital gold”.

But while bitcoin traded lower in June to around $65,000, the broader stock market continues to hit new records, driven by gains in mega-cap technology stocks such as Nvidia It is Litter.

Bitcoin’s inability to reach new records suggests that the stock market will likely try to recover as it is poised to fall in line with the cryptocurrency, according to the note.

“Recently, the weakening of bitcoin signals an imminent S&P 500 summer correction and consolidation phase,” Bannister said.

Bannister isn’t the only analyst on Wall Street taking stock market cues from bitcoin.

Fairlead Strategies founder Katie Stockton told CNBC on Monday that she is also watching the growing divergence between U.S. technology stocks and bitcoin.

“When we see bitcoin pulling back in this picture and the Nasdaq 100 just rising, that concerns us to some extent, just in the short term,” Stockton said. “We feel like this divergence is something that’s probably going to catch up with the Nasdaq 100 once people say ‘well, wait a second, Nvidia is maybe a little overextended here.’

Adding to Bannister’s conviction of an imminent stock market sell-off is the Federal Reserve, which could keep interest rates higher for longer to combat still-high inflation.

“The correction we expect in risk assets is reinforced by our view that the Fed moves away from its current cautious moderation as inflation remains elevated (‘last mile’ issues), thus exposing the overvalued S&P 500 vis-à-vis -vis the financial condition index and other measures,” Bannister said.

In a summer correction scenario, Bannister sees shares of big tech companies like Nvidia being hit the hardest as analysts’ future earnings estimates show signs of peaking.

“As NVDA follows past cycles, the rising leader could lead the downward 3Q24 correction,” Bannister said.

But Bannister admitted he may be ahead of schedule in his call for a market correction, as bubbles often march to the beat of their own drum.

It’s possible the stock could continue to rise before suffering an even more painful decline of about 20%.

“Previous bubbles since the 19th century indicate that the S&P 500 could very well rise to ~6,000 by year-end 2024 and then back and forth to near where 2024 began five quarters later in ~1Q26 (S&P 500~ 4,800),” Bannister said.

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Bitcoin

‘This is huge’ — Billionaire Mark Cuban issues ‘incredible’ Bitcoin and crypto prediction amid price slump

Published

6 months ago

1 August, 2024

BlockChainGuardian Staff

'This is huge' — Billionaire Mark Cuban issues 'incredible' Bitcoin and crypto prediction amid price slump

Bitcoin
Bitcoin
came back with a vengeance this year when former President Donald Trump Cryptocurrency boosts US presidential election in November with ‘revolutionary’ plan.

Subscribe now to Forbes CryptoAsset and Blockchain Consultant and “discover blockchain blockbusters poised to generate 1,000%+ gains” after the bitcoin halving earthquake!

The price of bitcoin has surged to more than its all-time high in recent months, surpassing $70,000 per bitcoin and triggering a wave of mega-optimistic predictions about the price of bitcointhough it fell again this week, falling below $65,000 after the Federal Reserve kept interest rates steady.

Now, as Elon Musk suddenly breaks his silence on bitcoin and cryptocurrenciesBillionaire investor Mark Cuban called a California plan to digitize 42 million car titles using blockchain an “incredible step forward” and “huge” for cryptocurrencies.

Sign up for free CryptoCodex now—A daily five-minute newsletter for traders, investors, and crypto curious people that will keep you up to date and ahead of the bitcoin and crypto bull market

ForbesElon Musk Suddenly Breaks His Silence On Bitcoin After Issuing Shocking Warning Of US Dollar “Doom” That Could Trigger Cryptocurrency Price BoomBy Billy Bambrough

Mark Cuban, famous Shark Tank investor and billionaire owner of the NBA team Dallas Mavericks, has… [+] called a cryptocurrency update “amazing” amid bitcoin’s price slump.

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The California Department of Motor Vehicles (DMV) has digitized 42 million car titles using blockchain, it was reported by Reuters, through technology company Oxhead Alpha on the Avalanche blockchain and designed to detect fraud and facilitate the securities transfer process.

“This is an incredible development for crypto,” Cuban, best known as an investor on TV’s Shark Tank and owner of the Dallas Mavericks NBA team, posted on X, joking that U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler could sue the state as part of his hostility toward cryptocurrencies and blockchain technology.

“The reason this is huge for crypto is because people who hold the tokens will have an app with an Avalanche wallet,” Cuban said. “Tens of millions of Californians having and using a crypto wallet in the next five years, or however long it takes, normalizes the use of wallets and crypto.”

John Wu, president of Avalanche developer Ava Labs, told Reuters that California’s DMV is “creating a wallet that you can download on your phone.”

Sign up for CryptoCodex now—A free daily newsletter for the crypto-curious

ForbesCryptocurrencies Are Suddenly Bracing For A ‘Very Major’ U-Turn In China After Wild Price Swings For Bitcoin, Ethereum, XRPBy Billy Bambrough

Bitcoin’s price has rallied this year, triggering a wave of bullish bitcoin price predictions from… [+] people like billionaire Mark Cuban.

Forbes Digital Assets

Last month, Cuban predicted that if the US dollar falls as the global reserve currency, bitcoin could become “a global ‘safe haven’” and a “global currency.” potentially sending the price of bitcoin to a much higher level.

According to Cuban, bitcoin could become what its most ardent supporters “envision” — a means “of protecting our economies… This is already happening in countries facing hyperinflation.”

The price of bitcoin has skyrocketed over the past year, largely due to the world’s largest asset manager, BlackRock, leading a bitcoin attack on Wall Street.

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Bitcoin

MicroStrategy’s Cash Flow Amid Bitcoin Rally Raises Some Eyebrows

Published

6 months ago

1 August, 2024

BlockChainGuardian Staff

MicroStrategy’s Cash Flow Amid Bitcoin Rally Raises Some Eyebrows

Analysts are starting to pay more attention than usual to Bitcoin-proxy’s underlying enterprise software business MicroStrategy Inc.

How to better invest cash generated from operations is what originally prompted co-founder and CEO Michael Saylor to turn to Bitcoin four years ago. Since then, the Tysons Corner, Va.-based company has adopted a two-pronged strategy of investing in the cryptocurrency instead of traditional assets like short-term Treasuries and ramping up its software operations.

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Bitcoin

Large Bitcoin (BTC) Holders Added $5.4 Billion Worth of BTC in July, Data Shows

Published

6 months ago

1 August, 2024

BlockChainGuardian Staff

Large Bitcoin (BTC) Holders Added $5.4 Billion Worth of BTC in July, Data Shows

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Bitcoin

Bitcoin (BTC) Hits Six-Week High After Trump’s Pro-Crypto Speech

Published

6 months ago

1 August, 2024

BlockChainGuardian Staff

Bitcoin (BTC) Hits Six-Week High After Trump’s Pro-Crypto Speech

Bitcoin has retreated from a six-week high as investors shift their focus to speculation the U.S. may sell seized tokens just days after Donald Trump vowed to create a government stockpile of the cryptocurrency if he is elected president again.

The US transferred $2 billion worth of Bitcoin to a new digital wallet address on Monday, blockchain research firm Arkham said in a publish on social media platform X. Market analysis firms have speculated that the tokens are from the Silk Road marketplace, where customers used virtual currencies to buy illegal drugs and hacking tools before it was shut down.

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