Renowned economist Timothy Peterson has made a bold prediction that Bitcoin’s price could skyrocket to $100,000 within the next three months. Peterson’s forecast is based on an intriguing correlation he has observed between high-yield bonds (HYG) and Bitcoin’s price movements.
In a recent analysis, Peterson highlighted that when Bitcoin is undervalued relative to HYG, it tends to significantly outperform in the subsequent three months. This relationship holds true for periods of one month or longer, suggesting a strong predictive power of high-yield bonds on Bitcoin’s price.
Conversely, when Bitcoin is overvalued compared to HYG, it tends to underperform, potentially leading to price declines. This unexpected connection between traditional finance and the cryptocurrency market challenges conventional thinking about the factors driving Bitcoin’s price.
Peterson further noted that with interest rates poised to fall, Bitcoin’s current price would theoretically be around $80,000 if this correlation holds true.
