Bitcoin: The Bull Cycle Is Not Over Yet - Analysis From Experts

robot
Abstract generation in progress

In the context of Bitcoin price dropping below $95,000, many investors are concerned that the bull cycle has ended. However, according to analysis from MartyParty - a cryptocurrency expert who previously operated on X (before Twitter) - this price decrease is not a sign of the end of the bull cycle; instead, it is just a transitional phase before the market truly takes off. Growth Doesn't Depend on QE or Interest Rate Cuts MartyParty pointed out that the Bitcoin price surge from 2023 did not come from quantitative easing policies (QE), interest rate cuts, or liquidity injections from central banks. Instead, this strong growth mainly came from the increasing acceptance and promotion of investment in ETF Spot Bitcoin funds by institutional investors. This demonstrates the inherent strength of the cryptocurrency market, as it can assert its value without direct support from traditional economic policies. Impact of FED Policy on the Market Since 2022, FED has implemented monetary tightening measures to control inflation by raising interest rates and reducing liquidity in circulation through quantitative tightening policy (QT). Although these measures create a stringent economic environment, investment flows from institutions into ETF Spot funds and major political events, such as Donald Trump taking office, have contributed to pushing the price of Bitcoin to record highs. According to MartyParty, a true bull cycle of cryptocurrencies may start when the FED transitions from QT policy to quantitative easing QE(. At that time, the liquidity boom, decreasing interest rates, and risk-taking investment sentiment will create a growth wave not only for Bitcoin but also strongly spread to various altcoins. Advice for Investors in Times of Volatility While FUD )sợ, uncertainty and ambition are spreading nghi( the community, MartyParty recommends that investors take advantage of the opportunity to "hoard" tokens during this period. Although the market tends to be bearish before a strong recovery, the high volatility of cryptocurrencies requires investors to be cautious, manage risks appropriately, and not bet too big on short-term bull runs. Conclusion Despite signs of correction in Bitcoin's price and the market experiencing unstable fluctuations, expert MartyParty asserts that the bull cycle is far from over. In fact, this is just a "cooling off" period before an explosive price surge occurs - which is likely to happen when the FED transitions to a quantitative easing policy. Investors should closely monitor the trend of monetary policy and take advantage of buying opportunities when prices fall, to prepare for a strong recovery phase in the future. This analysis not only clarifies the reasons behind the current surge in Bitcoin price but also provides an overview of the prospects of the cryptocurrency market in the context of global economic policy changes.

BTC0.74%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)