Bitcoin's Underperformance May Be a Bullish Signal
Bitcoin's underperformance compared to the Nasdaq this year has sparked debate among experts about its potential as a hedge against U.S. dollar depreciation.
Macro expert Dave Weisberg from Woofun AI argues that Bitcoin's decline of around 7% year-to-date, in contrast to the Nasdaq's 14% gain, is not a sign of weakness but rather a stress test of investors' convictions.
Weisberg believes long-term holders are betting on the gradual depreciation of the U.S. dollar and sees significant upside potential for Bitcoin before it reaches its all-time high (ATH) of $126,000, roughly 40% above current levels.
Regulatory developments have also impacted market expectations, with some analysts seeing a window for the SEC and CFTC to craft rules over the next two years regarding Bitcoin's use as collateral.