According to Cointelegraph: Bitcoin may be on the cusp of a significant recovery, with analysts pointing to the U.S. presidential election and a shift towards a "pro-liquidity environment" as key factors. According to Matthew Sigel, head of digital assets research at VanEck, the major sell-offs in Bitcoin are now behind us, and the market is entering a phase where the cryptocurrency typically struggles for one to three months following the halving, which occurred in April.

In July, the German government sold 49,858 Bitcoin for $2.6 billion, and about 70% of Mt. Gox creditors have been repaid, with many holding onto their Bitcoin. These events are seen as part of the "forced selling" that analysts believe is now over.

Global Liquidity Surge

Recent observations show that global liquidity is beginning to rise, which could signal a bullish trend for Bitcoin. Francesco Madonna, CEO of BitVaulty, highlighted that this increase in global liquidity could lead to a significant Bitcoin bull run, potentially reaching its peak in 2025.

Investment strategist Lyn Alden noted that Bitcoin's lack of significant price action is expected, given that global liquidity has been stagnant for two years. However, Alden predicts that as the market shifts to a more "pro-liquidity environment," Bitcoin could surpass its current all-time high of $73,679 by 2025.

Impact of the U.S. Presidential Election

Sigel also pointed out that the upcoming U.S. presidential election in November could be a pivotal moment for Bitcoin's price. He suggests that regardless of the election's outcome, the macroeconomic conditions are likely to remain consistent, leading to continued fiscal policies that could benefit Bitcoin.

Overall, analysts are optimistic that Bitcoin will recover and potentially move closer to new all-time highs, driven by the election and improving global liquidity.