Price analysis 12/7: BTC, ETH, XRP, LTC, BCH, LINK, DOT, ADA, BNB, XLM

Recent news reports suggest that U.S. lawmakers may announce a new round of economic stimulus worth about $908 billion before the end of today. This second package, if announced, will add to the existing debt pile and may send the U.S. dollar index (DXY) lower. The index is already trading near its lowest level since April 2018.

The slow economic recovery, expansionary monetary policy, overvalued stocks and negative bond yields are some of the reasons that have forced investors to search for alternative assets to safeguard their portfolios.

Gold has been one of the favorite safe-haven assets of investors for many decades. However, in 2020, a few institutional investors diversified into Bitcoin (BTC) because they believed it would outperform gold.

Investors who made this choice have benefitted from the sharp Bitcoin rally of the past few weeks and many are likely to hold their position given that most investors expect BTC price to rise higher.

Daily cryptocurrency market performance. Source: Coin360

Bitcoin’s recent stellar performance is no secret and the number of institutional investors attracted to the digital asset is likely to increase because few will want to be left behind in the race to buy the deflationary cryptocurrency.

Henri Arslanian, Global Crypto Leader at PwC, recently told Bloomberg that one day investors will question the wisdom of fund managers who decided not to invest in Bitcoin

While the increased institutional inflow of money looks to be a certainty, the question one needs to ask is to what level will the institutions keep buying. There is not an exact answer to this question but investors should refrain from getting swept up in FOMO and buying Bitcoin just because everyone else is. 

Let’s study the charts of the top-10 cryptocurrencies to determine which may offer lucrative opportunities.