Analysis News

Will Bitcoin (BTC) grow up to $ 14 K before the collapse?

Growing bitcoin causes opposing judgments. Besides the fact that it will definitely be tothemoon by 2021, many people would like to know a closer perspective. And it is foggy, especially after the loud statements of Jerome Powell, the Chairman of the Federal Reserve.

Main indicators of fiat markets

It was after the presentation of Powell in the US Congress with a report on monetary policy that the markets went up. The main indicator of the market S&P 500 showed a record high of 3000 points. Does this tell us something or not?

Stock indexes are invented just to help investors navigate trends. The indices for crypto market have not yet been launched, but there is a definite correlation between the fiat and crypto market. Perhaps this should be taken into account in order to properly navigate crypto market. The S & P 500 index in its current form is known since 1957 and was launched by Standard & Poor’s, a company engaged in financial information and analysis. This is a stock market index that tracks the stock price movements of the 500 largest US companies. Since its inception, it has been widely used as a general indicator of stock prices. So far, record highs occurred in September 2018 and May 2019, at over 2,900 points.

Another major index is the Dow Jones. It estimates the value of 30 public companies listed on the NASDAQ and the New York Stock Exchange. It is one of the oldest and most popular indices in the world. In fact, according to it, the analyst determines the health of the market and economy. It includes monsters such as Apple, ExxonMobil, Walt Disney Company. To this day, Dow Jones records were in September 2018 and May 2019 – around 27 K.

What is the indices correlation with crypto? There may be different options. But, as a rule, when the indices grow, gold falls, because it is a safe haven, a protective asset. For some time, Bitcoin is also perceived as a haven, no less reliable than gold, since it does not obey a single center. Consequently, there may indeed be a falling market ahead. The question is – how deep? And to what level will it rise before collapse?

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