Bitcoin becomes macro asset thanks to institutional

In light of the constant search for correlations with gold and stock market indices, as institutionalinvestors began to buy cryptocurrency for hedging, bitcoin is becoming a recognized asset.

Transition to a new level

This time on the global agenda, Bitcoin maybe more sensitive to developments in the yuan market as the cryptocurrency has become a macro asset class this year following increased institutional participation.

“It is no longer possible to analyze the cryptocurrency market without analyzing the rest of the macro markets.”, — Messari analysts wrote in their newsletter on Tuesday, adding:

«The 2020 recession officially marks the beginningBitcoin as a macro asset. For retail investors and institutional investors, cryptocurrency — not the only asset class in their portfolio. Therefore, it is very important to look at crypto assets from the point of view of investment portfolio allocation.

Indeed, legendary fund managers such as Paul Tudor Jones have recently shown an interest in Bitcoin as a hedge against inflation.

“Bitcoin now reminds me of gold when I first went into business in 1976,— Jones said, recalling —Gold, a precious metal with limited reserves, tends to rise during fiat currency devaluations. ”

Fundamental Factors on the Bitcoin Side

Philippe Gillespie, CEO of B2C2 Japan, said he is personally bullish on Bitcoin's rise due to a combination of excessive money printing by central banks and increasing geopolitical risks.

“I expect serious anti-China rhetoric incoming days/weeks/months as Trump tries to use nationalism/protectionism and anger towards China as a major catalyst for political support,— said Gillespie, adding, —We will soon find out whether there is a positive correlation between USD/CNY and Bitcoin returns.”

Meanwhile, some analysts expect that the Chinese yuan will continue to decline due to escalating tensions in the US and China, and some Chinese speculators will enter the crypto market.

"Because the US and other countries are takingIn response to China’s proposed security law, we expect the yuan to depreciate further, while BTC could again benefit as an alternative to local and liquid safe haven assets. ”, — says Matthew Dibb, co-founder of cryptocurrency tracker and index fund provider Stack.

Technical factors show strength

While fundamental expectations may be optimistic, technical factors point to BTC's limited ability to gain upside potential.

Bitcoin rises above $9’000 againdollars, having been forced to defend levels below $8’700 twice in the last two days. The top cryptocurrency by market capitalization is currently trading around $9’100, posting a gain of almost 3% on the day. On several exchanges, including Switzerland's Bitstamp, prices peaked at around $9’200.

The 4-hour chart now reports a breakout of the falling wedge — bullish reversal pattern — The recent sell-off has ended and buyers have regained control of the BTC market.

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As BTC continues to rise, it may faceresistance is at $9’310, which is the bearish lower high reached on May 24th. The overall bullish trend will be restored if prices settle into five figures.

Alternatively, if prices fail to sustain gains above $9,217,000, we could see a fall to the current weekly low of $8,217,630.

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