Bitcoin and Ethereum have fallen from their recent highs in 2021, but have shown more resilience compared to their traditional market counterparts during the recent Royal Macro Beating.
Here’s why a top economist and investor says this is incredibly bullish for the two titans cryptocurrency assets.
Royal Macro Beating cannot defeat bullish Bitcoin and Ethereum
The stock market plummeted this week and precious metals sold off sharply as the global macro environment remained turbulent. But somehow Ethereum and Bitcoin held up comparatively well in the midst of a “royal macro blow”.
Economist and trader Alex Kruger says resilience is “bullish” for Bitcoin and Ethereum. The top two crypto assets have been in an uptrend for a full year, and the recent macro jitter has been the first big bump in the road since then.
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Bitcoin exploded from lows of $ 4,000 to $ 58,000 per coin at its high, while Ethereum fell below $ 100 and has since risen to $ 2,000. The more than 10x spike might not be anywhere near the finish line, however, and this is where the catalyst sending cryptocurrencies higher through the resistance level could hold up as well.
Ethereum and Bitcoin have held up very well compared to the S&P 500 and Gold. | ETHUSD on TradingView.com
The guard’s switch to crypto is underway
The exchange is on thin ice and precious metals cannot be upgraded or updated and will have limited use as a store of value in the future compared to cryptocurrencies.
The digital gold narrative worked, and the steepness of the gold sell-off above shows how effective the narrative was. Crypto prices that hold up so well as gold plummets could bring even more capital from metals into the scarce digital asset.
Related reading | Mark Cuban Slams Peter Schiff: Gold is dead, Bitcoin and Ethereum are today
Profit-taking on the currency-overheated stock market will want to follow money wherever the grass is greener and profits are constant. If that place is the crypto market, the floodgates of capital could finally come, helping to bring Bitcoin to prices of hundreds of thousands of dollars per coin and tens of thousands of dollars per ether.
Emerging technologies are only now making their mark as financial assets, and institutional investors have begun to see the shift from traditional to digital assets, and those that were early to date have been the most profitable.
Will Bitcoin and Ethereum continue to keep up this well, or will they ultimately succumb to the prolonged macro blows currently taking place in the markets?
Featured image from deposit photos, charts from TradingView.com
