Is Bitcoin [BTC] Running Out of Bullish Arguments Due to Stock Market Rally?

By Nivesh Rustgi
Published November 9, 2019 Updated November 9, 2019
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Is Bitcoin [BTC] Running Out of Bullish Arguments Due to Stock Market Rally?

By Nivesh Rustgi
Published November 9, 2019 Updated November 9, 2019

Bitcoin price plunged below $9000 mark yet again. What looked like a possible break above $10,000, has turned into longer days of consolidation.

The narrative for Bitcoin [BTC] investment has taken many shapes and forms over the years. After its failure as a payment mechanism in 2016-2017, the ‘safe haven‘ narrative has become wildly popular.

Kolanovic, JP Morgans’ global head of macro quantitative and derivatives strategy, suggests strong bullish growth of the equity markets.

gold usd chart
Gold/USD Daily Price Chart (TradingView)

Gold prices slumped below $1500, at the beginning of the week. As the stock market continues to rally, and the trade tension relaxes and easing of the global monetary policies. Hence, the short term need for a safe haven, which was a strong catalyst in the upward price movement, seems to have slowed down.

Can Halving Keep the Momentum Going?

Bitcoin [BTC] halving is due next year in May. The event will reduce the rewards for mining Bitcoin by half. This represents a massive shift in the supply of the cryptocurrency. It acts as a reliable bullish indicator as the ecosystem looks to keep the price above the break-even price for miners.

Nevertheless, the overall demand for Bitcoin has been questionable with a lack of retail interest. An analyst, KernelTrader noted on Twitter,

$btc has shown one thing, with current supply, the demand just isn’t there to maintain 5 digit prices over a sustained period

Is a small reduction in daily issuance going to suddenly change that?
Based on current demand, I’m not convinced it will

But Bitcoin is More than That

Bitcoin [BTC] competes with gold as a store of value. However, the demand for gold has been subdued by the demand for other reserve currencies like USD, Euros, and YEN. While gold bugs continued to argue against them, the market went towards short term gains.

Hence, in a world where there isn’t a strong demand for sound money, how will Bitcoin present its case? Alex Kruger tweeted,

I think only a very small (loud) minority care or will ever care about “sound money”. Goldbugs did not succeed in getting widespread support for their sound money crusade. Don’t see why Bitcoiners will succeed were gold bugs failed.

Bitcoin investors are now counting on a ‘paradigm shift’ in the economy on a large scale. A fall in the economy of large proportions sounds like the perfectly opportune moment.

While it seems far fetched at the moment, the inflation and rising debts support the cause. Economist Ray Dalio reaffirmed his belief in the fall of the FIAT system under its massive debts.

Willy Woo, a prominent on-chain crypto analyst, replied to Kruger on similar lines,

n the 6000 yr arc of gold as money, this 48 yr reign of fiat is a stop-hunt wick on century candles. Fiat happened before, it’ll happen again far after this candle closes.

Do you think the end of the FIAT era is near as well? Please share your views with us. 


The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Nivesh Rustgi
1181 Articles
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)