Crypto Weekly: 3/11/2021
Crypto markets are rebounding from last week’s rate rise tantrum
Bitcoin and crypto have rallied over the last several days after crypto and the broader markets have started to shake off rising rate fears.
Easing investor concerns, the quick move upward in the 10 year has slowed, but what could interest rates tell us about the possible direction of Bitcoin prices? First let’s revisit what’s recently happened:
- The COVID pandemic took interest rates to unprecedented lows during 2020 and we’re now recovering off that lower bound.
- Over that time, Bitcoin has rallied ~18x to $55k from the $3k low it hit during the post pandemic start sell off in March 2020.
- Many high growth and momentum tech stocks saw spectacular returns as well over that time frame but have been falling out of favor as rates have been rising and the economy has started to reopen.
- In such an environment, some investors are asking - has the Bitcoin rally ran its course?
We think the answer remains no and the Bitcoin bull market cycle has room to go.
Source: Tradingview, Fundstrat
Bitcoin investors shouldn’t be concerned about further treasury rate rises
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