One of the best cryptocurrency buying opportunities in the near future".
Cryptocurrencies will rise sharply in the near future, and I predict ETH will reach $7,000, while BTC will make its first attempt at $100,000 before the November election."
The reasons are as follows:
The market is reactive, especially around major events such as ETF issuance. Looking back at the situation after the issuance of the US spot Bitcoin ETF, contrary to optimistic expectations, the price of Bitcoin plummeted from $49,000 to $38,000, a 22% drop in just 12 days. This event should serve as a warning that the market is going against the generally expected trend.
The recent market panic selling has had a significant impact, which has dampened the enthusiasm of market participants and hindered the usual strategy of buying on dips using leveraged positions. “It is clear that the recent sell-off ultimately caught market participants by surprise due to a lack of leverage to buy the dip over a long period of time. This situation sets the stage for a market correction, which often follows a pattern of initially slow recovery, stabilization, and then a rapid rise after a catalytic event. Recall the BTC ETF leak in October as a “buy the news” event that recalibrated market sentiment.
Financial markets are forward-looking, and the cryptocurrency market is no exception. Markets have adapted to past events such as the Mt. Gox incident and the US and German government sell-offs of Bitcoin. “The key thing to remember here is that markets are forward-looking. Excess supply citing Mt. Gox or the US and German governments is old news — the market has already priced it in. Fear and capitulation can trigger irrational short-sightedness,
On the macro side, the November election and additional liquidity from the Fed. On the micro side, these include the ETH ETF, the Circle IPO, and improved profitability of BTC miners due to artificial intelligence, which are expected to reduce selling pressure (such as Bitcoin miners) and boost market sentiment.
Market technicals BTC and ETH CME basis, alternative open interest as a percentage of total open interest, and macro relative value are all at cycle lows, while stablecoin supply is finally growing again. The combination of these factors suggests that the market may be forming a bottom.
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