Biggest Crypto Gainers Today on DEXTools – AGI, JNY, PAPA
There's been a noticeable divergence between Bitcoin and the stock market in recent months, which could presage an economic recession, according to Bloomberg strategist Mike McGlone.
He pointed out that after months of outperforming the Nasdaq 100 index, Bitcoin dropped 15% in the third quarter, while the Nasdaq went up by 2%.
In light of these events, what are the biggest crypto gainers today on DEXTools?
McGlone explained that this divergence between Bitcoin and stocks is meaningful because of Bitcoin's status as the highest-returning asset ever.
He presented two potential scenarios -- either stocks follow Bitcoin's downtrend into a recession, or Bitcoin's underperformance compared to the Nasdaq is an anomaly.
McGlone believes scenario one is more likely, with high-interest rates triggering a recession that impacts both Bitcoin and equities.
Earlier in August, McGlone pointed out similarities between Bitcoin's current price chart and stocks in the 1930s following the 1929 crash, suggesting a possible major recession ahead for the leading cryptocurrency.
Most Bitcoin analysts remain optimistic about its cyclical halving timeline, expecting Bitcoin to repeat past upswings tied to the halving when miner rewards are cut in half every four years.
With 19.48 million coins circulating, Bitcoin would reach around $66,838 if it matched its past all-time high market capitalization - a 160% increase from the current $25,747 level.
However, some warn that Bitcoin's halving performance could diverge from past cycles.
Ultimately, analysts are split on whether Bitcoin's recent divergence from stocks is a harbinger of recession or just an anomaly.
The coming months will determine whether Bitcoin continues to chart its own path or falls prey to
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