As the co-founder of Albright Investment Group, a Connecticut-based investment firm, said the cryptocurrency has sufficient upside potential – even if its attempts to get the bulls above critical resistance levels near $ 10,000 have failed.
S&P 500 looks bleak
Dergunov’s positive comments on Bitcoin follow a dark S&P 500.According to the fund manager, the US benchmark index has weaker upside potential, citing poor underlying metrics related to less-than-expected returns and earnings.He further criticizes the 40 percent recovery of the S&P 500 from its low reached in mid-March because it was fueled by an excess of stimulus measures from the US Federal Reserve.The U.S. central bank announced in March 2020 that it would cut interest rates to near zero. It also accelerated a flood of bond purchase programs to stabilize the US economy while promoting the availability of credit.Federal Reserve chairman Jerome Powell stressed that they would do anything to protect the market from a “financial meltdown”.In addition, the government intervened and approved more than $ 3 trillion in spending to combat the economic crisis. The net stimulus now expects a breakthrough of over $ 10 trillion.
Dergunov also recommends alternatives to Bitcoin that could act like a hedge should the stock market slide. This included Spotgold, a top competitor to Bitcoin, who recently hit its seven-year high of over $ 1,700.