Bitcoin could be an alternative to US-listed companies but not in the short term

Bitcoin has dipped below $27,000, adding to the subdued cryptocurrency market sentiment. While short-term price concerns persist, analysts predict a rebound based on historical figures. At the same time, the number of US-listed firms that are unprofitable has increased, based on a report by Goldman Sachs. This could prompt investors to explore Bitcoin as an alternative investment.

Bitcoin slips below $27,000

Bitcoin's price dip below $27,000 has added more negativity to the lukewarm cryptocurrency market. At the time of writing, Bitcoin (BTC) is trading at around $26,790, with a daily trading volume of $10.4 billion. Over the past seven days, the king coin has experienced a 3% loss, based on CoinGecko figures.

Crypto influencer Wise Advice, also known as Money Guru, derided analysts predicting further price declines for Bitcoin. In a post on X, he stated, "The #BTC fake pump seems almost over, and $19k–$20k should be next. Then we will see a short-term bounce around there, and then the last capitulation leg to $12k."

Later, Wise Advice  said that the post was satirical in regard to analysts predicting lower lows for Bitcoin. 

Crypto analyst Rekt Capital underlined Bitcoin's retracement by drawing parallels with historical cycles. Rekt’s tweet explained that less than 190 days before Bitcoin Halving, Bitcoin fell 25% in 2015 and 38% in 2019. This could mean that in the short term, Bitcoin might experience some price weakness before a potential rebound leading up to the Bitcoin halving event.
 

Markus Thielen, author of 'Crypto Titans,' drew comparisons between the Fed's monetary policies and Bitcoin's price rally of 325% in 2019.

Thielen pointed out, "At present, the most critical macroeconomic factor appears to reflect the situation in 2019 when the Fed paused its rate hikes, leading to a significant surge in Bitcoin prices."
 

He also discussed the potential for a downward economic trend in the US, highlighting indicators such as an inverted US yield curve.

Bitcoin's rally could shadow losses from equity

A Goldman Sachs report recently revealed that nearly half of publicly-listed US companies were unprofitable in 2022. The trend raised questions about investor willingness to continue financing loss-making entities. The report noted that unprofitable firms constitute a significant 10% of total business revenues, accounting for approximately 13% of capital spending and employment.

Therefore, with a potential market downturn pending in the US, if equities fail to deliver, investors might increasingly explore alternatives in Bitcoin and other crypto assets.  Considering that unprofitable listed companies deter investors, Bitcoin may offer investment opportunities based on past performance during similar macroeconomic shifts.

Bitcoin currently faces short-term fluctuations but may emerge as a compelling alternative to US-listed companies, especially when a significant portion of these companies are unprofitable.