Could Bitcoin Be ‘Recharging’ Like An Analyst Believes The US Economy Is Doing?
- The current time between the last recession has been one of the longest streaks in history.
- CNBC’s Michael Santoli believes that the US economy has been pushing for new heights.
The US economy is going through one of the longest periods since a recession ever. Typically, recessions are expected to arise every seven or eight years, but this is not the predicament of the United States presently. There are many economic analysts that worry that a major fall has been coming for quite a while, but the market doesn’t show the same.
With this confidence, Michael Santoli of CNBC has argued that the market is recharging as it prepares for new heights, rather than being in the late-cycle of markets. Along with having multiple indications that a recession isn’t coming, Santoli stated that stocks are experiencing a massive upside if the central banking policies and global industry surveys upturn is any sign.
The question remains of the correlation that may exist between Bitcoin and S&P 500. If there’s a correlation, this could be positive for Bitcoin. After all, as Thomas Lee of Fundstrat has pointed out, Bitcoin needs a new high before the S&P 500 will reach a new all-time high itself. The best years that Bitcoin has experienced so far has been when the annual return for the S&P 500 passed 15%.
According to a recent article by BeInCrypto, the stock market seems to guide Bitcoin as a “risk-on” assessment. Essentially, that connection means that Bitcoin would suffer with the decline of stocks in the next recession.
It is possible that additional growth will happen, but economists cannot specifically say if that is possible. There are many exchanges that can happen in a financial market, and the upcoming election next year will likely include some of these differences. The trends of years past point to the need for a growing stock to see Bitcoin thrive. However, since this bull run of the economy has lasted far beyond many others, it is still possible that the market will see a pullback.