A lot of negative news and sentiment is still beating down upon the crypto market. On Thursday it was hotter than expected inflation, plus the SEC going after yet another crypto infrastructure provider. However, Bitcoin bulls are continuing to push the $BTC price towards a new uptrend, while the crypto market in general is showing good signs of recovery.
Negative news keeps the lid on the $BTC price
Inflation showing a slightly bigger increase than expected, and the SEC going after digital assets market maker CumberlandDRW - these are the new supposed negatives which will keep the lid on the Bitcoin price, as well as on the crypto market in general.
Market sentiment for crypto has dipped further into the Fear according to Alternative.me Fear and Greed Index, purportedly showing that investors are suitably worried about the future of digital currencies.
Stock market thriving - why not Bitcoin?
However, at the same time, the S&P 500 continues to make new all-time highs every few days, and the tech-heavy Nasdaq is only 2% from returning to its own all-time high. Gold and silver are also continuing to spike, so why on earth would Bitcoin and crypto not begin to follow the same path?
The answer is that they are, albeit in a lagging manner thus far. Nevertheless, the perception across the general public, and even among many crypto investors, is that the crypto industry could be on the edge of oblivion. Never mind that Bitcoin has always recovered strongly from big corrections during its bull market, and that the rest of crypto has always followed it.
Just like any asset, Bitcoin is never promised an easy ride, and the rough seas of the market will always buffet the price strongly from one extreme to the other. That said, the macro trend is always up - at least as far as Bitcoin’s short history has proven.
Bitcoin ready to launch higher
It might have been there 7 months so far, but the $BTC price is still within its bull flag. The meteoric rise of the king of the cryptocurrencies before entering the flag, very probably on the back of the wildly successful U.S. Spot Bitcoin ETFs, really needed a long time for this mad surge to be absorbed.
The argument now is that this has finally happened, and that Bitcoin looks as though it is ready to launch into the next stage of its bull market. The $BTC price is currently in the middle of the flag, and has managed to weather the latest storm in order to hold above the $61,000 horizontal support. If Bitcoin can rise back to the top of the flag from here, it could be game-on again.
Global monetary easing to spark Bitcoin’s next price surge
It surely can be argued that monetary easing is going to flood markets over the next few months, as central banks around the world attempt to restimulate their economies. This has already begun on a large scale in China, and other central banks, including the Federal Reserve, have started to announce a series of interest rate cuts. Other forms of monetary easing will no doubt also take place.
In this kind of environment, Bitcoin has always thrived, and has led all other assets historically during its bull market. Why would this not happen this time? How could the dollar, or any other fiat currency outperform Bitcoin in such times?
Yes, the market is probably swayed by mainstream media accounts of this or that Fed decision, or by accounts of temperature rises in this or that conflict, but at the end of the day, Bitcoin is an asset that is outside of any government control, and it is scarcer than any other asset.
Just these two facts is surely enough to ensure that Bitcoin will lead the next huge rally in assets, as governments further debase their currencies. Perhaps the market just doesn’t fully realise this yet …
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
