As a seasoned researcher with a decade-long career in financial markets and a deep-rooted interest in cryptocurrencies, I have learned to navigate through the stormy seas of market fluctuations. The recent developments in the crypto market might appear disheartening at first glance, but they are merely temporary ripples in the grand ocean of digital currencies.
Despite ongoing negative news and pessimistic sentiment, the cryptocurrency market is still experiencing a barrage of unfavorable developments. For instance, Thursday saw unexpectedly high inflation rates and the Securities and Exchange Commission targeting another crypto infrastructure provider. Nevertheless, Bitcoin enthusiasts are persistently driving up the price of $BTC in an effort to initiate a new upward trend. Meanwhile, the broader crypto market is exhibiting positive signs of recuperation.
Negative news keeps the lid on the $BTC price
As a researcher, I’ve noticed an unexpectedly larger inflation rate, and the Securities and Exchange Commission (SEC) taking action against digital assets market maker CumberlandDRW. These developments could potentially cap the price of Bitcoin and, by extension, the broader cryptocurrency market.
The Fear and Greed Index on Alternative.me indicates that investor feelings towards cryptocurrency have grown more cautious, suggesting a heightened level of concern regarding the future of digital assets.
Stock market thriving – why not Bitcoin?
Meanwhile, despite this, the S&P 500 keeps reaching new record highs almost daily, with the Nasdaq, a tech-focused index, just 2% away from regaining its own all-time high. The prices of gold and silver are also on the rise. Given these circumstances, one might wonder why Bitcoin and cryptocurrencies wouldn’t start mirroring this trend?
As a researcher studying this field, I can say that, while it may seem so to some, the crypto industry is not teetering on the brink of extinction. Despite initial setbacks, Bitcoin has consistently bounced back significantly during its bull market phases, and this trend has been mirrored by the broader crypto market. The widespread perception among the general public and even many crypto investors that the industry might be doomed is, in my view, misguided.
Much like any investment, Bitcoin’s journey isn’t smooth sailing; it frequently encounters turbulent markets that can cause its value to swing dramatically from high to low. However, if we look at Bitcoin’s brief history, the overall trend seems to be on an upward trajectory.
Bitcoin ready to launch higher
Even though it’s been 7 months since its appearance, the price of Bitcoin (BTC) is still within its bullish consolidation phase, or “bull flag”. The dramatic increase in Bitcoin’s value, often referred to as the leader among cryptocurrencies, prior to entering this consolidation period, may have taken such a long time to stabilize due to the significant impact of the successful U.S. Spot Bitcoin Exchange-Traded Funds (ETFs). These ETFs likely required a considerable amount of time for the market to fully absorb this impressive rise.
The argument now is that this has finally happened, and that Bitcoin looks as though it is ready to launch into the next stage of its bull market. The $BTC price is currently in the middle of the flag, and has managed to weather the latest storm in order to hold above the $61,000 horizontal support. If Bitcoin can rise back to the top of the flag from here, it could be game-on again.
Global monetary easing to spark Bitcoin’s next price surge
It’s quite plausible that markets worldwide could experience an influx of liquidity over the coming months due to central banks implementing monetary easing policies to revive their economies. This trend has already gained momentum in China, and other central banks such as the Federal Reserve have initiated a sequence of interest rate reductions. It’s also likely that other forms of monetary easing measures will follow suit.
In conditions like these, Bitcoin has consistently prospered and traditionally taken the lead among all assets during its growth periods. One might question why it wouldn’t do so this time. Under what circumstances could the U.S. dollar, or any other fiat currency, outperform Bitcoin in such situations?
As an analyst, I acknowledge the potential influence of mainstream media narratives on market trends, be it regarding Fed decisions or geopolitical conflicts. However, what sets Bitcoin apart is its unique status as an asset beyond the reach of any single government. Moreover, its scarcity surpasses that of other assets, making it a distinct investment opportunity.
With these two pieces of information alone, it’s likely that Bitcoin will spearhead the next significant surge in asset values, given that governments continue to weaken their currencies. However, it seems the market may not be completely aware of this potentiality as of now.
Read More
Sorry. No data so far.
2024-10-11 14:08