Bitcoin Expected to Surge as U.S. Macroeconomic Conditions Improve, says Analyst
Summary:
Financial commentator Tedtalksmacro predicts a potential Bitcoin price surge within the next ten days, backed by positive US macro conditions. Tedtalksmacro has noticed a significant correlation between Bitcoin price and Federal Reserve liquidity for several months. Despite recent short-term headwinds for Bitcoin indicated by reduced ETF inflows, increased institutional interest is expected in Q3 with the anticipated permission of US wirehouses to access spot ETF products.
Financial analyst Tedtalksmacro suggests that Bitcoin (BTC), though trended downward by about 3.2% in June, could see a reversal within the next ten days, due to positive macroeconomic conditions in the US. Tedtalksmacro has observed a strict correlation between Federal Reserve liquidity and Bitcoin's price movements for several months.
Reviewing the effect of Fed's liquidity on BTC/USD values, he pointed out the almost parallel movements of both figures, indicating a potential resurgence of Bitcoin when liquidity increases. On his own macroeconomic data platform, Talking Macro, records validated this correlation as the highs and lows of Bitcoin prices coincided with the rise and fall of Fed liquidity.
Bitcoin's peak price of $73,800 in mid-March came alongside a liquidity surge. According to Tedtalksmacro, this liquidity data is calculated from a blend of information related to Federal Reserve's assets, treasury, and repurchase agreement markets.
Talking Macro also highlighted the current reductions in inflows into US spot Bitcoin exchange-traded funds (ETFs), indicating short-term issues for the cryptocurrency. After reaching the second highest-single day inflows in early June, the trend reversed over the next four days trading, with net outflows becoming more predominant.
Investment firm Farside estimated total outflows from the four days of trading barely surpassing $700 million, which is still less than the single-day record $886 million inflow on June 4th.
Enthusiasm is ramping up for the third quarter, with expectations of increased institutional interest in Bitcoin. This is because US financial services companies (wirehouses) are anticipated to be able to access spot ETF products, expanding Bitcoin's status as a favoured institutional investment class. This potential entry point of US wirehouses has attracted the attention of many, including ARK Invest CEO, Cathie Wood, who is known for her bullish Bitcoin predictions.
Cathie Wood observed that the Bitcoin market has yet to truly explode, as no major financial platforms have yet approved Bitcoin, suggesting that the significant price movements seen to date are just the tip of the iceberg.
This news should not be regarded as investment advice or recommendations. Investing and trading activities involve risks, as such, readers should carry out their own research and evaluation before making any investment decisions.
Published At
6/20/2024 11:05:00 AM
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