Bitcoin (BTC) is increasingly on the minds of investors around the world with its recent price drop. Several large investors may be sitting and waiting with capital to invest in BTC when it hits a new low.
However, in fact, no one really understands when the bottom will be reached. Billionaire investor Mark Mobius has predicted that Bitcoin’s bottom is about to be reached.
In Bloomberg’s latest interview, Mobius claimed that
“Bitcoin traders are still discussing buying on the downside, which indicates positivity. It also implies that we haven’t settled at the bottom of the stock market crash.”
Bitcoin has often been tied to US stock indices, particularly the Nasdaq 100. Nonetheless, since early May, Bitcoin and the broader crypto market have been recovering faster than US stocks.
Bitcoin Price Action Indicates Stock Market Decline
Mobius, surprisingly, indicated that Bitcoin will be the main signal for the stock market to decline. He advises stock traders to focus on cryptocurrencies. He believes cryptocurrencies are used to analyze investor confidence. The Nasdaq Composite falls the day after Bitcoin fell. This is the layout you will get. This demonstrates that Bitcoin is a big mover.
Market crash keeps bitcoin miners on the move
Bitcoin miners have been among the most active sellers throughout this global recession. As the price of bitcoin fell below $20,000, miners transferred more bitcoin to fund operational costs.
Additionally, CryptoQuant CEO Ki-Young Ju notes that several indications point to a decline. He thinks it is not reasonable to build a large short position in Bitcoin during this time. Instead, Bitcoin could be in an extended consolidation phase.