- Global liquidity surged, with an annualized rate of over 6%
- Bitcoin seemed set to make a new all-time-high.
As a seasoned crypto investor with a decade-long journey through the digital asset landscape, I find myself increasingly optimistic about the near future of Bitcoin [BTC]. The surging global liquidity, currently at an annualized rate of over 6%, is reminiscent of the golden days of April 2020. This rapid expansion is likely to propel risk assets like Bitcoin higher in the medium term.
Rapidly increasing worldwide cash flow, currently expanding at a yearly pace of more than 6%, represents the quickest growth seen since April 2022. This trend could influence the value of Bitcoin [BTC].
Over the past four years, there’s been a recurring pattern of growth, and we’re currently observing a similar ascent that started around April 2020. This increase in available funds could potentially elevate the value of riskier assets like Bitcoin for an extended period ahead.
In the upcoming period, it’s anticipated that central banks like the U.S. Federal Reserve and European Central Bank will lower interest rates. This move is seen as a starting point for a worldwide trend of monetary easing.
Nevertheless, temporary challenges persist, notably due to the challenging “Fed liquidity conditions” and a possible boost in the value of the US dollar.
The coming weeks may present golden opportunities, particularly for Bitcoin.
BTC’s cup & handle pattern
An increase in worldwide funds could heavily influence Bitcoin’s value. Currently, Bitcoin appears to be shaping a large cup-and-handle chart formation, and experts predict a potential breakout around mid-September, possibly coinciding with or following the Federal Reserve’s meeting.
This situation might spark a significant price surge, marking the beginning that experts refer to as the “Bitcoin bull market” from 2024 to 2025. It’s recommended that investors keep their Bitcoin and get ready for this predicted price rise.
If Bitcoin reaches its all-time high again, it may potentially rise towards $100,000, particularly if certain political scenarios such as a Trump victory occur, according to some experts’ predictions.
If Bitcoin approaches its all-time high (ATH) but faces rejection there, analysts may need to delve deeper for more insight, yet the general sentiment continues to lean towards a bullish outlook.
Long-term holder supply
Another bullish indicator is the Bitcoin long-term holder supply, which is nearing a new ATH.
As of now, I’ve observed that a significant number of long-term investors have held approximately 16.13 million Bitcoins for over 155 days. Interestingly, the previous all-time high was reached back in December 2023, with a total of 16.29 million Bitcoins being held long-term at that time.
The substantial buildup by investors holding onto Bitcoin for a long time, which includes institutions, indicates that key players are staying devoted to it. This suggests a high probability of Bitcoin’s price increasing over the next few months.
Bitcoin volatility and Funding Rates
The volatility associated with Bitcoin has once again approached peak levels in its cycle, a situation that may prove advantageous or challenging for traders.
As a long-term crypto investor, I view these times of challenge for leveraged traders as potential indicators of positive price movements on the horizon.
Even though volatility still hasn’t reached the levels seen in 2021, it seems poised to grow as major investors return to trading activities.
Read Bitcoin’s [BTC] Price Prediction 2024–2025
The funding rates for Bitcoin have been consistently optimistic for more than a year, fueling anticipation of a significant increase in its price.
For over a year now, bulls have been leading the charge in the Futures market. With an increasing flow of funds worldwide, it’s expected that the value of Bitcoin could continue to climb in the coming months.
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2024-09-11 06:16