The past few months have been rough.
But with US elections ahead and rising liquidity, the tide could soon shift.
Here are 5 reasons why staying on the sidelines could cost you big time.
1. Liquidity Injections:
I believe we could see $90k $BTC soon.
This prediction is based on injections from two major central banks: US and China.
Estimated $400B from the US and $140B from China.
Remember, liquidity leads everything else
2. Stablecoins Dynamics:
Stablecoin supply is just over ATHs while asset prices have soared. Why?
Higher cost and risk of capital in USDC/USDT compared to bank dollars.
With banks offering 5% risk-free, there's little incentive to move money on-chain.
Rate Cut Environment:
However, this could all change soon.
The US is entering a rate cut environment for the first time in 4 years.
Positive for crypto, as more money will move on-chain for yield.
Stablecoin liquidity is already starting to pick up
Risk-On Shift:
Historically, lower interest rates feed stronger trading markets.
$BTC often leads in crypto, with $BTC.D rising sharply in the short-term.
As the market shifts risk-on with declining rates, some money could flow into altcoins.
3. End Of Miner Capitulation:
$BTC miner capitulation is likely over, a reliable bullish indicator in past cycles.
Hash rate is recovering, coinciding with upgrades to next-gen hardware.
4. Equities Catch-Up:
$BTC and $SPX have been inversely correlated over the past few weeks.
Similar divergences happened in Jan (23' and 24'), with $BTC catching up each time.
With $ETH ETFs now live, crypto's presence in TradFi is growing rapidly.
5. Political Catalysts:
A pro-crypto US regime change looks likely. This could be the biggest catalyst of all.
Notably, Trump spoke at the BTC 2024 Conference in Nashville, which took place from July 25-27.
As US elections near, crypto could keep gaining momentum.
End Of Article.
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As always, purely educational - not financial advice.
