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Pompliano says Bitcoin has shown a greater decoupling from stocks and is now positive so far this year.
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The Fear & Greed Index jumped from “neutral” to “greed” between Sunday and Monday.
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Executives at Nexo and BitBull Capital are also bullish on Bitcoin, with $46,000 now a key price level for bulls.
Bitcoin’s breakout over recent days has included a rally to intraday highs of $48,075 witnessed on Monday. That upside has pushed BTC into positive territory year-to-date while highlighting an increasing divergence from traditional equity markets.
BTC up, stocks down YTD
Anthony Pompliano, founder of Pomp Investments, summed it up: “Bitcoin is outperforming stocks this year,” even as the market haze that clouded the start of the year begins to clear. He points out that Bitcoin is up while major equities are down, with sideways action giving way to fresh BTC gains that have left stocks behind.
“We are seeing Bitcoin outperform the stock market so far this year, just like last year and just like it has done over the past decade or so,” the entrepreneur said.
Looking at major indexes, the S&P 500 stands about -4.61% year-to-date, the Nasdaq Composite is roughly -9.33%, and the Dow Jones Industrial Average is about -4.45% YTD. Bitcoin, by contrast, is up nearly 4% for the year, and from its YTD low around $33,000 it has climbed roughly 44%.
Fear & Greed Index
Pompliano also highlights the Fear & Greed Index, noting a substantial shift in just a few days. Buying pressure has surged as the gauge moved into the “greed” zone, climbing above 60. On Sunday the measure was around 49 (neutral), and it spent much of last week in the mid-20s.
The rally to highs near $48k demonstrates that Bitcoin remains dominant even when markets look dire, Pompliano added. He says Bitcoin continues to prove itself “the ultimate safe-haven asset.”
Pandemic-fueled recession occurred & bitcoin appreciated in price.
QE-fueled inflation occurred & bitcoin appreciated in price.
War-fueled market chaos occurred & bitcoin appreciated in price.
Bitcoin continues to serve as the ultimate safe haven asset.
— Pomp 🌪 (@APompliano) March 28, 2022
Antoni Trenchev, co-founder and managing partner at Nexo, says the recent rally has put Bitcoin through its 2022 peak for the fifth time. With more investors likely to be drawn into the market, additional buying could push BTC-USD even higher.
“It may simply be time to wake up out of the Bitcoin sideways slumber that was 2022,” Trenchev said, a line Pompliano highlights in his YouTube commentary.
Joe DiPasquale, CEO of BitBull Capital, noted that bulls will want to see BTC-USD hold above $46,000 to create room for further momentum. “The coming week is also important because it marks the end of the quarter, and we could see increased volatility after that,” he told Pompliano.