U.Today – As (BTC) recovers from its six-month low and activity in institutional products increases, more analysts are coming in with bullish forecasts for the coming months. DeFi researcher and educator Michael Nadeau sums up the most compelling reasons for optimism that Bitcoiners can have right now.
Sellers have grown tired, ETFs are gaining ground, what else? 10 bullish catalysts according to researchers
Bitcoin (BTC) is shedding its first major correction in this cycle, with the most powerful drivers of selling pressure either being liquidated or finally running out of funds. This is one of the positive catalysts for the largest cryptocurrency and the segment as a whole, says analyst Michael Nadeau in a recent thread.
Moreover, in this context, he noted a complete reset of funding rates, the activation of long-term holders after profit-taking in Q2 2024, and the capitulation of miners losing traction.
Sentiment in the altcoin segment is highly pessimistic, which is regularly interpreted as a “necessary” phase before the next leg of a rally.
In macroeconomic terms, there are more signs that national fiat currencies will weaken. In the past, this has always sparked interest in Bitcoin (BTC) as a hedge against inflation and macroeconomic instability.
Furthermore, with the launch of both Bitcoin and spot ETFs, large institutional holders of BTC and ETH are actively selling their holdings to the new generation of investors, which is further evidence of the strong interest.
As previously covered by U.Today, prominent macroeconomist Raoul Pal stressed that he did not sell any cryptocurrencies amid the most painful phase of the crash.
The setup looks similar to Q4 2020: What's similar?
Real Vision's CEO called the latest bloodbath nothing more than a “jolt” and only recommended avoiding influencer use and sharing FOMO (fear of missing out).
Last but not least, Nadeau highlighted that all of the major CeFis that contributed to the excessive leverage of the past cycle, such as BlockFi, Genesis, and Celsius, simply no longer exist.
As such, he sees no reason to be pessimistic about BTC and other cryptocurrencies in the long term:
He concluded that, given all the fear in the market, what is happening today can be compared to early Q4 2020, when Paul Tudor Jones called BTC the “fastest horse” and Michael Saylor started the MicroStrategy Bitcoin saga.
Back then, Bitcoin (BTC) was trading in the $10,000-$15,000 range, while today it is at $58,000, capping gains of almost 1.2% over the past 24 hours.
This article was originally published on U.Today
