Analysts have discovered a significant similarity between Bitcoin price trend and chip stocks. Over the course of seven months since the start of 2017, the main Philadelphia Semiconductor Sector Index’s price trend has been similar.
A chart revealed by CNBC showed:
It is unclear whether the similarity between the price trend of Bitcoin and the SOX is somewhat relates to every other or completely coincidental. However, Evercore ISI technical analyst Rich Ross noted that he has been encouraging investors and traders to buy biotech and sell semiconductors, thinking about the increase of the SOX value.
Why mainstream media & analysts Compare Bitcoin
Like a safe haven asset like gold, Bitcoin is a long-term investment, for the vast majority of casual investors and dealers.
Investors are building a portfolio of Bitcoin and other cryptocurrencies like Ethereum, Ethereum Classic and Litecoin since the market has the propensity to perform at its highest level in the midst of economic uncertainty and instability.
The extensive and consistent report from the mainstream press on the similarities and differences between stock and Bitcoin markets could be considered as an optimistic sign. The fact that traditional and traditional investors are contemplating cryptocurrencies in general and Bitcoin as a legitimate asset class and digital currencies that are workable places the whole cryptocurrency market at a position to grow at an exponential rate.
In many countries such as Australia, South Korea and Japan, mainstream media outlets have been always comparing the worth of Bitcoin to some of the world’s biggest reserve currencies like the US dollar, Japanese Yen and Chinese Yuan, to address the fast growing interest towards Bitcoin as a long-term investment.
Early investors in Bitcoin recognize the actual value of Bitcoin which derives from its nature and its ability to render existing systems and international financial networks by creating a peer to peer ecosystem for transaction 40,, useless.
Hence, there is still a part of investors that have purchased Bitcoin with the primary purpose of utilizing it as a money and a medium of exchange.