Bitcoin has seen a huge price increase so far in 2021, but such a bull market can't last forever. So when will it be ended? Podcaster Nathaniel Whittemore recently commented on methods for analyzing whether we are near a peak. When will a bull market turn into a bear market? - "There really isn't a macro peak in the sense that the conditions are so well aligned with the narrative," said Whittemore, who hosts a podcast titled "The Breakdown. - If we see another big round of aggressive fiscal action under the Democrats, and after a few months the velocity of money in circulation is still low and inflation is limited, you could see a return among some executives and financial institutions to the view that inflation is simply not something they have to worry about, he added, suggesting that institutions would then stop buying cryptocurrencies. Recall that after the March crash, bitcoin rebounded faster than the U.S. exchange, which saw a similar decline. After the halving that took place in May, BTC fell into a sideways trend that lasted throughout the summer. BTC's price momentum only picked up in the final months of 2020. In the background, quite a few large companies were buying up cryptocurrencies. This was favored by the US policy - the government worked on stimulus packages, the Fed lowered the interest rate and it was already openly said that the goal of the authorities was to devalue the dollar. All of the above has already made BTC cost approx. 40,000 USD. However, what will happen next in the price field? Is the exchange rate overheated? Theoretically, the exchange rate is already highly overheated. - A local peak could come if people get nervous that [the BTC exchange rate] is just overheated and when new retail investors come in, Whittemore said. - That hasn't happened yet, but we seem to be slowly getting there. Just eight days after the New Year, bitcoin is already up more than 40 percent, based on TradingView.com data. - The speed of the bump is pretty staggering - there's no denying that," Whittemore explained. However, he added that in his eyes, BTC is still "an undervalued asset with insanely limited supply already by design that eventually gets re-priced." Tags bitcoin btc btc/usd
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