A trillion in incremental funds has appeared! The super bull in the cryptocurrency circle is coming, and these currencies are about to soar!
WIF surged 20% in one day. Can it continue to rise?
First of all, it is important to emphasize that there are only four days left in the fourth quarter. In the past history of the cryptocurrency circle, the average increase was as high as 88%, and even the median increase was 56%. Therefore, it has become a consensus that Bitcoin will rise to $100,000 by the end of the year, and the bull market will kick off in October.
So, don’t ask anymore, the super bull is about to start! Any callback now is your extremely precious opportunity to get on board!
Okay, let’s get to the point.
First, let’s talk about the major events of this week. After the Federal Reserve cut interest rates by 50 basis points, China, the world’s second largest economy, also entered a phase of quantitative easing.
According to Xinhua News Agency, the People's Bank of China will lower the reserve requirement ratio by 0.5%, which will inject 1 trillion yuan into the market, equivalent to 140 billion US dollars. It also marks a turning point in global liquidity. Please see the picture.
The figure shows the changes in the money supply M2 of major economies around the world. It can be clearly seen that the seemingly irregular trend of Bitcoin actually shows a very large positive correlation with the global money supply. When M2 decreases, the price of the currency decreases; and when M2 increases, the price of the currency increases. It is that simple and direct.
However, in these two months, we can see that global liquidity has risen again, but the price of the currency is still hovering around 60,000, which is an important bullish divergence phenomenon.
And it can be expected that countries around the world, especially the Federal Reserve, have entered a loose cycle, and the subsequent M2 will continue to rise. Therefore, the bull market in the cryptocurrency circle can be said to be ready to go. As long as you hold on to the coins, you can easily make money. By next year, our assets will at least quadruple or quintuple. So, don't just focus on the short-term fluctuations of one or two days, pay more attention to the big trends. When Ethereum rises to 10,000 next year, you look back and see, my God, the current price of more than 2,000 is simply a bargain!
Okay, after talking about M2, which is positively correlated with the cryptocurrency market, let’s take a look at the US dollar index DXY, which is negatively correlated with it. Please see the picture below.
I'm sure everyone has noticed that when the dollar appreciates, Bitcoin will fall, and when the dollar depreciates, Bitcoin will rise. In this month, DXY has depreciated significantly, but the price of Bitcoin has not changed much, so this is another bullish divergence phenomenon.
In particular, the US dollar has formed an obvious M-head double top pattern, with extremely strong expectations of a fall, and its downward space is quite large. At present, the US dollar is just barely maintaining the 100 mark, but this situation will not last long. Because with the subsequent interest rate cuts by the Federal Reserve, the continued depreciation of the US dollar is almost a foregone conclusion.
Therefore, whoever holds US dollars at this moment will face the risk of depreciation of their assets. Therefore, smart money is converting US dollars into US stocks or cryptocurrencies, which creates another extremely favorable environment for the next bull market in the cryptocurrency circle.
Today, major Wall Street institutions are actively preparing for the bull market.
For example, the billionaire MicroStrategy recently successfully completed a round of financing of $1 billion to purchase more Bitcoin. This is largely due to the Fed's interest rate cut, which has reduced borrowing costs and has led institutions to increase leverage.
After the mainstream coins rose, the rebound of altcoins should also be put on the agenda. Just like Pepe, everyone must pay attention to this daily level suppression line.
Once it breaks through, its trend will be reversed. It has a full 130% upside potential from its previous high of 0.17, which is far more than mainstream currencies.
The trend of Floki is more optimistic. Now it has broken through the downward trend line, and the bottom is very solid and starts to rise gradually. If the top can break through 0.165 and create a higher high, it means that the bottom is rising while the top is also rising, which will be a complete reversal of the market.
Although as a Meme coin, its risk is much greater than that of mainstream coins, Floki has more room for growth. If it reaches 0.035, it will double. I am willing to take a chance with a small position.
However, the market is not all good news. One of the hot spots of the cryptocurrency circle, Trump’s approval rating has dropped slightly recently, from 51% last month to 48% now, so his election this time is indeed full of uncertainty.
Fortunately, Harris has some good news. After two months, she finally expressed her views on cryptocurrencies. In a speech in Pittsburgh, she said that if she is elected, the United States will "maintain its leading position in artificial intelligence, quantum computing, blockchain and other emerging technologies", that is, to encourage innovation in artificial intelligence, quantum computing and blockchain to improve the competitiveness of the United States.
So there is no need to worry. Even if Trump fails to be elected, Harris will not target the cryptocurrency market. Coupled with the continued release of funds by the Federal Reserve and the launch of the Bitcoin ETF on Wall Street, the coming of a bull market in the cryptocurrency market is a certain event. We just need to be patient enough.
Yesterday, the unemployment data of the United States was released! Here we mainly look at the number of first-time unemployment benefit applications. If it is lower than expected, it is positive, and if it is higher than expected, it is negative. If the GDP revision is higher than expected, it is positive, and if it is lower than expected, it is negative.
Judging from these two data, both are positive. However, Bitcoin has a relatively high resistance at 65,000. Let's see if it can successfully break through this time.
The final value of real GDP for the second quarter will be announced at 8:30 tonight. This data is related to people's assessment of the economic recession. The previous value of this data was 3%, and the market expectation was also 3%. These two data will determine the future trend of the cryptocurrency circle.
