Analysts have discovered a significant similarity between Bitcoin price trend and chip stocks. Over the course of seven months since the beginning of 2017, the main Philadelphia Semiconductor Sector Index’s cost trend has been similar.
A graph revealed:
It’s uncertain whether the similarity between the purchase price trend of Bitcoin and the SOX is relates to each other or completely coincidental. But, Evercore ISI analyst Rich Ross noted that he has been aggressively encouraging traders and investors to purchase biotech and market semiconductors, thinking about the recent hike of the SOX value.
“I reiterate my market call on Semi’s and continue to observe a test of 1,000 on the SOX (-8 percent) as the team continues to display the textbook signs of a change in trend and a technical symmetry with Bitcoin, which will be down -9 percent overnight and poised for another -17 percent to 2,044,” stated Ross.
Why mainstream media & analysts Compare Bitcoin to stocks
For the majority of dealers and investors, Bitcoin is a long-term investment, like a safe haven asset such as gold.
Investors are building a portfolio of Bitcoin and other cryptocurrencies such as Ethereum, Ethereum Classic and Litecoin since the market has the propensity to perform at its greatest level in the midst of instability and economic uncertainty.
However, the extensive report from the mainstream press about the similarities and differences between stock and Bitcoin markets may be regarded as an optimistic sign. The fact that traditional and traditional investors are contemplating Bitcoin and cryptocurrencies generally as currencies that are workable and a legitimate asset class places the entire cryptocurrency market at a workable place to grow at an exponential rate.
In many countries including Australia, South Korea and Japan, mainstream media outlets have been continuously comparing the worth of Bitcoin to some of the world’s largest reserve currencies such as the US dollar, Japanese Yen and Chinese Yuan, to address the fast growing interest towards Bitcoin as a long-term investment.
Most early investors in Bitcoin recognize the value of Bitcoin which derives from its nature and its capacity to render banking systems and international networks by creating a peer useless.
Hence, is still a large part of investors that have purchased Bitcoin of using it as a medium of exchange and a currency with the principal goal.