A veteran Wall Street strategist says Bitcoin is on the verge of entering the most favorable macro conditions it has ever experienced, and that a specific economic trigger will confirm the setup is in place.
In a new X post, Jordi Visser, former managing director at Morgan Stanley, highlights that publicly listed Bitcoin-focused companies have been massively outperforming software stocks since the S&P 500 bottomed on March 30th.
According to Visser, the data suggests that savvy investors are sniffing out the possibility that the macro setup is about to become extremely favorable for BTC.
“Last week, I highlighted the correlation break between BTC and software led by the miners. During this SPX rally, software ex BTC names continue to lag. Here are the 10 best performers in IGV since the March 30th lows. Filled with Crypto names. Reminder we are about to enter the best quadrant for BTC since inception if CPI gets above 3-month [Treasury] bills.”
Data from the Bureau of Labor Statistics (BLS) shows that the Consumer Price Index (CPI), an inflation measure, surged to 3.3% in March. Meanwhile, the US 3-Month Treasury is currently trading at 3.88%.
Last week, Visser argued that over the past three years, Bitcoin had to compete against surging software names and the US 3-Month Treasury for flows. According to the market veteran, investors preferred the safer short-term Treasuries, as they offered yields above inflation, while owning growth stocks in tech.
But with the emergence of AI, investors now fear that technology will disrupt the software sector. And if inflation soars above short-term Treasury yields, Visser argued that investors will flock into Bitcoin, believing that it is the one code-based asset that strengthens with AI advancements.
Visser also predicted that Bitcoin will witness sustained rallies if it breaches the $76,000 level.
At time of publishing, Bitcoin is trading at $78,470.
Disclaimer: Opinions expressed at CapitalAI Daily are not investment advice. Investors should do their own due diligence before making any decisions involving securities, cryptocurrencies, or digital assets. Your transfers and trades are at your own risk, and any losses you may incur are your responsibility. CapitalAI Daily does not recommend the buying or selling of any assets, nor is CapitalAI Daily an investment advisor. See our Editorial Standards and Terms of Use.