Bitcoin Could Be In For Some ‘Big Bumps’ Over The Next Six Weeks—Here’s Why
In a recent tweet on September 22, 2020, LarK Davis, a popular crypto personality, tweeted his view on bitcoin’s direction. In his opinion, he believes the correlation between bitcoin and the equity markets may see bitcoin on a continuous decline in the coming weeks. However, he also expressed that November could be a month to remember for the crypto asset, bitcoin.
Crypto Lark’s Basis For His Prognostication
Lark Davis is a popular crypto personality from New Zealand, known for his publications on cryptocurrency and the blockchain, and a host of the popular crypto-focused youtube channel, the crypto lark, he has come to amass a significant following.
Having been in the space for several years, he shares his insight about bitcoin’s direction in the coming weeks; he based his opinion on past historical data. Backing his claims with the S&P 500 Index Average Monthy Returns report between 1950 – 2019, he reveals that the stock market index that tracks 500 large-cap U.S. companies (S&P 500) has historically performed poorly in September and October of election years.
And because there’s a correlation between the equity markets and bitcoin over time, the top cryptocurrency by market capitalization may follow suit. This, he says, could translate to “some big bumps over the next 6 weeks,” for bitcoin. However, he expresses some hope as these gloomy days for bitcoin would be shortlived, saying that November is the month when bitcoin usually makes a strong comeback.
Unfortunately, not everyone agrees with his opinion, with one of his followers respectfully saying that Lark Davis’s opinion is habitually wrong. And again, another commenter says the crypto influencer hasn’t been up to his game lately.
Another Election Year And What This means For Bitcoin
As reiterated by many analysts and enthusiasts and backed up by historical data, bitcoin performs incredibly well after the U.S. elections. This is because it is believed that the Federal Reserve will raise interest rates on the dollar, and hopes that the incoming president may endorse bitcoin also drives up demand for the digital asset.
As at the time of writing, bitcoin trades at $10,450. The crypto asset lost about 5% in value yesterday (Monday). However, presently, there are no significant market movements, with bulls nowhere to be found to take the price back up. The coming days might see more decline for the crypto asset, as opined by Lark Davis.