In brief:
As Bitcoin (BTC) continues on its interstellar mission above $10,000, ChainLink’s fortunes in the crypto markets are in the opposite direction. LINK is in the midst of a normal, yet heavy correction, from its recent all-time high value of $8.92 to its $7.13 value at the time of writing this. Furthermore, LINK seemed to dip harder as Bitcoin pumped with the digital asset falling below $7 to $6.50 – Binance rate – when Bitcoin broke $11k.
The lack of correlation between LINK and Bitcoin was the driving force for ChainLink as it hit its recent all-time high. At that time, Bitcoin was flirting with $9k levels for close to two months. This fact was highlighted by the team at Cane Island Alternative Advisors via the following statement and before LINK printed its recent all-time high.
Unlike most other cryptocurrencies and tokens, LINK was not materially influenced by Bitcoin’s price movements. The merit to this finding lies not only in an investment diversification benefit, but in that almost none of the popular naysay arguments against Bitcoin would have much weight or applicability to LINK.
To get a picture as to when ChainLink might turn bullish again, we visit the daily LINK/USDT chart courtesy of Tradingview.com.
From the chart, the following can be observed.
ChainLink (LINK) is in the midst of a heavy correction. The digital asset has proven to not be affected as much by Bitcoin’s price movement. This lack of correlation with Bitcoin might find LINK dropping to as low as its previous all-time high value around $5.
Timothy Peterson, of Cane Island Alternative Advisors, and the investment manager who pointed out LINK’s potential to continually grow based on Metcalfe’s value, also sees one scenario where LINK drops to $5. He made this statement via the following tweet and also cautioned that ChainLink’s growth is an important variable in determining the future value of LINK.