Economist Timothy Peterson made a bold claim that Bitcoin could rise above $100,000 in the next 90 days, citing the surprising connection between high-yield bonds and Bitcoin's price movements.
Peterson's Analysis
In his analysis, Peterson highlights the 'predictive power' of high-yield bonds, particularly the high-yield bond (HYG) index, on the future price of Bitcoin. According to Peterson, when Bitcoin is undervalued relative to HYG, it tends to make significant gains in the following three months. Peterson notes that this relationship is statistically significant over time periods of one month or longer.
Market Conditions
Peterson's analysis suggests that current market conditions are ripe for such a surge. He also explained that when Bitcoin is overvalued relative to HYG, it typically signals a potential drop in price, demonstrating the strength of this connection between traditional finance and the cryptocurrency market.
Current BTC Price
In addition, Peterson claimed that if the FED had lowered interest rates, the BTC price would currently be around $80,000. However, the BTC price has seen a deep decline today and is trading around $59,300 at the time of writing.
Exploring the connection between traditional financial instruments and cryptocurrencies may provide new insights for investors. Time will tell if Timothy Peterson's predictions of Bitcoin's rise above $100,000 will come true.
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