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Following the SEC’s green light for 11 spot Bitcoin ETFs in the US, volatility in the largest cryptocurrency increased. Crypto analyst and trader Kevin Svenson shared his predictions for what’s next for Bitcoin (BTC) in the coming weeks and months.
According to Analyst, S&P 500 Index is a Leading Indicator for Bitcoin
Svenson told his YouTube subscribers that the S&P 500, an index tracking the stock performance of the top 500 listed companies in the US, has previously served as a leading indicator for Bitcoin, reaching all-time highs before Bitcoin did. The analyst stated that the S&P 500 is a guide for Bitcoin, saying:
The S&P 500 has always reached all-time highs, leading Bitcoin. This is a good sign because Bitcoin is still 40% below its all-time high, and the S&P 500 is very close to its all-time high.
If you look at the past, the second block reward halving in 2016 saw the S&P 500 reach all-time highs, and about seven months later, Bitcoin reached its all-time high. There was a gap of about seven months.
In the period of the third block reward halving in 2020, the S&P reached all-time highs, and about four months later, Bitcoin reached its all-time high.
S&P 500 at All-Time Highs
On Wall Street, the S&P 500 index finished the last trading day of the week, January 19, at an all-time high. The ongoing rally in technology stocks drove the S&P 500 to a record for the first time in two years. Fueled by the hope that the artificial intelligence boom will continue to lift the market, the S&P 500 surpassed 4,800 points. After the S&P 500’s record-breaking performance, the analyst commented on what Bitcoin might do:
I can say that Bitcoin is less than six months away from reaching its all-time high.
So if the S&P 500 breaks its all-time high and sets a new record, we can be quite sure that Bitcoin will do the same within months and then enter this bull market. At least history is showing us this.
