On Monday, Sven Henrich, the founder and the lead market strategist for northmantrader.com discussed bitcoin “rallying in the face of this crisis.” The technical analyst and market commentator highlighted four reasons why he believes bitcoin’s value surged — “Fundamental, Sentiment, Technical, [and] Safety trade.”
Northmantrader founder Sven Henrich describes why he thinks “Bitcoin is rallying in the face of crisis”
The price of bitcoin (BTC) jumped on Monday to hit a high of $44,256 per unit at 5:35 p.m. EST. The price of BTC has not been this high in USD value for about 39 days, since January 20, 2022. The rise in the price of Bitcoin has triggered a number of conversation on social networks and forums during the day. After the major crypto’s price surged, gold bug and economist Peter Schiff shared his two cents on market action on Monday.
“Gold and bitcoin are both up today,” Schiff tweeted. “But this move in no way implies a correlation. They’re rising for different reasons. Gold is up as a safe-haven and inflation hedge. Bitcoin is up for the reason ARKK is up. Speculators in risk assets have been conditioned to buy the dips.”
Meanwhile, northmantrader.com founder and chief market strategist, Sven Henrich, had a totally different perspective on Bitcoin’s rally on Monday. In one Twitter feed, Henrich described why he thinks bitcoin is “rallying in the face of this crisis.” Henrich mentioned four main reasons in the Twitter thread, the first being “fundamental”.
“Fundamental: Adoption [and] acceptance continues to expand, i.e Ebay but also institutional. This path will continue in my view. There is no sign of regression, but continued expansion,” Henrich noted. “Sentiment: The Ukraine crisis highlights how bitcoin can act as a support mechanism to raise funds when traditional avenues are cut off. Blockchain [and] decentralized money to become more relevant.”
The market strategist continued:
Technical: Bitcoin bottomed against stocks in February, showing positive divergence [and] defense of a key trend. Beginning of the correlation decoupling process? Safety Trade: Sanctioned money may seek bitcoin as a safe haven (unconfirmed). It also invites risk because it gives an excuse to speed up regulation (positive long-term risk/short-term risk).
Henrich Says ‘Bitcoin Is Here to Stay’ — Some Claim ‘Bitcoin’s Success Could Be Its Demise’
Henrich further added that the bottom line is that bitcoin “is here to stay” and the fiat monetary system further bolsters the fact. “The rationale for [bitcoin’s] existence finding more validation as the existing fiat world requires ever more intervention to stay afloat,” Henrich stressed in his Twitter thread.
A person responded over Henrich and asked, “If people stop putting money into bitcoin, does it stay afloat? It’s almost as if it requires constant injections of cash. another individual responded to the question and said:
You just described our fiat monetary system.
However, some people to respond to Henrich’s tweets were inclined to believe that “BTC’s success will be its demise” and that “the double-edged sword is beginning to bite.” The individual left a link to an article discussing Christine Lagarde, President of the European Central Bank (ECB), calling on global lawmakers to approve regulations to prevent Russia from escaping financial sanctions.
