Bitcoin (BTC-USD) is experiencing weakness in Thursday morning trading even though stocks (SP500) are rising, a rare dynamic given their strong correlation over the past year.
Moreover, bitcoin (BTC-USD -1.9%), which hit an intraday low of $28.08K at around 5:00 a.m. ET, is changing hands at $29.1K as of shortly before 10:30 a.m. ET. Ethereum (ETH-USD -5.9%) is seeing even more volatility as the token craters to $1.85K, a modest recovery from $1.75K in early trading.
On the flip side, stocks are getting a lift as investors shrug off downbeat earnings as well as a slew of poor economic data. All three major U.S. stock averages are gaining at least 1%, with the tech-heavy Nasdaq (COMP.IND) +1.5% in the lead.
While bitcoin (BTC-USD) trades more than 55% below its all-time high in November 2021, some strategists suggest plenty of upside from current levels.
Yves Lamoureux, the president of macroeconomic research firm Lamoureux, is predicting bitcoin (BTC-USD) to reach $100K by later 2023 in a move that could last until 2025, he told MarketWatch in an interview.
“I’m not giving a major buy signal, I’m just saying, yes, you can start to buy a little bit,” Lamoureux emphasized, as quoted by MarketWatch. And bitcoin (BTC-USD) has “less supply, so there’s less coming to the market …that historically has always driven prices higher. What I’m saying is that it’s out of the narrative now,” he added.
By contrast, Guggenheim Partners Chief Investment Officer Scott Minerd sees bitcoin (BTC-USD) crashing to $8K, as the Federal Reserve gets more serious about taking hawkish measures to dull inflationary pressures. The price target was substantially revised down from his $400K forecast back in December 2020.
Other major cryptos deep in the red include: Cardano (ADA-USD -5.0%), solana (SOL-USD -7.9%), dogecoin (DOGE-USD -5.6%), polkadot (DOT-USD -5.7%), avalanche (AVAX-USD -12.9%), polygon (MATIC-USD -5.8%), litecoin (LTC-USD -7.3%), cronos (CRO-USD -6.5%) and uniswap (UNI-USD -8.4%).
Earlier this week (May 25) Bitcoin and ether wobbled ahead of Fed minutes.