100%+ BTC price gains? Bitcoin faces ‘massively overvalued’ stocks

Should this come as an outcome of an equities comedown, the situation is not clear cut. As Cointelegraph reported, Bitcoin has nevertheless managed to ditch its positive correlation to stocks, something which research company Santiment this week called a timeless early bull market signal.This post does not contain investment guidance or recommendations. Every investment and trading move includes danger, and readers must conduct their own research when making a choice.

Bitcoin (BTC) will “reassert” itself to provide over 100% annual BTC cost gains, states one of the crypto industrys major proponents.In an interview with CNBC airing Oct. 5 and released Oct. 31, Dan Morehead, CEO of hedge fund Pantera Capital, anticipated continued crypto expansion.Morehead: “We might easily see” 40% stocks meltdownBitcoin closed October up 29%, seeing its second-best month of 2023 and returning to 18-month highs in the process.Eyeing macroeconomic conditions, however, Panteras Morehead and others are concerned about another threat possession class– what he refers to as “enormously overvalued” stocks.” Equities are miscalculated because the P/E is the very same level it was when rates were falling, but now rates are much greater and rising,” he informed CNBC. “If you took the 50-year average equity risk premium with a 5.00% 10-year note, equities need to be 23% lower than today.” Morehead described changing macro conditions in the United States, with interest rates at their highest in over 2 years.” Im not saying -43% is going to occur over night, however we have to keep in mind there have actually been two 13-year durations where equities were flat– in the 2000s and in the 70s, 80s,” he continued the topic. “We could easily see that again.” Despite the grim prognosis, Morehead was complimentary of both Bitcoin and the largest altcoin, Ether (ETH), forecasting the former to more than double every year, in line with typical performance to date.” Bitcoin has a 14-year trend development of 145% a year,” he stated. “Thats my generic forecast– it will re-assert its trend and will more than double every year.” Bitcoin, Ether quarterly returns (screenshot). Source: CoinGlassBTC cost dangers prehalving collapseThe great times for BTC price performance might only follow a fresh bout of pain for hodlers.Related: Bitcoin beats S&P 500 in October as $40K BTC rate forecasts circulation inPrior to the 2024 block subsidy halving, some are worried that a significant retracement could enter.For Filbfilb, co-founder of trading suite DecenTrader, the timing will likely focus on a month before the halving– around March next year.A month before or so seems the meta.– filbfilb (@filbfilb) November 1, 2023