Nathaniel Whittemore discussed Bitcoin’s price trajectory and what might be holding back bullish momentum
The price of Bitcoin (BTC) is recently experiencing a very volatile moment, having more than doubled in the last two months after leaving behind the previous record highs of 2017. Podcaster Nathaniel Whittemore gave his opinion on ways to spot a macro top in this bull run.
The host of The Breakdown podcast told Cointelegraph, „There really isn’t a macro top in the sense that the conditions align nicely with the narrative.“
Whittemore then added:
Following the March crash, Crypto Profit recovered faster than the U.S. stock market, which had suffered a similar collapse. After completing its third halving in May, the asset trended sideways for most of the summer, but its overall macro-trend remained bullish. Coinciding with significant capital allocations by some large companies, the price of BTC rose significantly in the final months of 2020.
„If the Democrats were to impose a series of new fiscal measures and after a few months the velocity of money was still low and inflation limited, then some managers and institutions might decide to turn around, animated by the idea that inflation is not something to worry about-that could hurt some of the thesis animating the bull run.“
The U.S. economic situation also plays an important role in this reasoning, as the government has been working on a number of economic stimuli as well as printing significant amounts of money.
Bitcoin’s previous macro bull run tops have come as a result of price corrections in an extended bullish outlook. A local top is a shorter-term price spike that occurs before a correction.
Whittemore pointed out:
„A local top could come if people get nervous that [BTC] is too unstable and the market has overheated with new retail investors coming in. […] That hasn’t happened yet, but it looks like we’re in an early stage (see Coinbase coming in at #25 on the most downloaded free apps from Apple’s App Store).“
Just nine days into the new year, Bitcoin is already up more than 40 percent, according to data from TradingView.com.
„The speed of this growth is pretty dizzying, there’s no denying that. What’s happening is that we have a hugely underpriced asset, with a constrained supply by design, that is finally being revalued. A lot of big buyers have moved in and there’s not enough to go around.“
Bitcoin has a maximum supply of 21 million coins, making it an inherently scarce asset. Regardless, BTC is still less than 15 years old: as Mark Cuban previously stated, Bitcoin is worth as much as people are willing to pay for it, as is the case with gold. Some experts, such as financial commentator Peter Schiff, still remain skeptical of Bitcoin and call it a bubble.