U.Today – Bitcoin's Price Dynamics

Jordi Visser, former CIO and president of Weiss Multi-Strategy Advisors, believes Bitcoin (BTC) hasn't reached a bubble phase above $100,000. Before it potentially peaks, Bitcoin must rally against MAG7, a significant index of major U.S. tech stocks.

Is BTC in a Bubble?

According to seasoned investor and commentator Jordi Visser, the price of Bitcoin (BTC) is not in a bubble stage. In a recent X thread, he emphasized that despite Bitcoin doubling its price for the second consecutive year, it is far from resembling a tech company bubble.

Visser notes that the Bitcoin macro chart contrasts sharply with the 1990s Internet bubble, which experienced no annual declines. Additionally, he argues that the performance of MicroStrategy in crypto should not be interpreted as a sign of a bubble phase.

He referred to the 2020-2021 NFT and early meme coin frenzies as prime examples of crypto bubbles, marked by media euphoria and strong performance across altcoin classes.

Recent statistics from the altcoin market also suggest we have not yet reached a peak. The ETH/BTC ratio, a critical indicator for altcoins, recently hit a multi-year low just before Bitcoin’s surge beyond $100,000. Ethereum (ETH), now over $4,000, has yet to revisit its all-time high.

Focus on the Magnificent 7

Currently, significant capital is flowing into spot Bitcoin and Ethereum ETFs in the U.S. and Hong Kong, with this trend showing no signs of slowing. Despite various controversies and regulatory challenges, crypto ETFs are the fastest-growing products in ETF history.

For Bitcoin to achieve a genuine bubble status, it needs to rally against MAG7, which includes tech giants like Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla. Visser points out that the parabolic growth of the BTC/MAG7 rate has historically indicated the peak of Bitcoin price cycles.

This article was originally published on U.Today