Analysts are optimistic as liquidity ticks and Bitcoin ‘forced selling’ ends.
According to analysts, Bitcoin will move to higher levels after the US election and into a “pro-liquidity environment”.
“With all this necessarily selling behind us, this Bitcoin is a typical seasonal pattern after the halving, which was in April, which tends to struggle between one and three months,” argued Matthew Sigel, head of VanEck Digital Assets Research, in an interview on August 19. with CNBC.
In July, the German government sold 49,858 Bitcoin (BTC) for $2.6 billion. Meanwhile, nearly 70% of creditors of the bankrupt crypto exchange Mt. Gox have been paid, the data shows that many are holding on to Bitcoin.
The recent increase in global liquidity
Many analysts have noted that global liquidity has begun to increase.
“Global liquidity has begun to increase, a pattern is emerging,” BitVaulty CEO Francesco Madonna wrote in a post on August 17.
Francesco Madonna suggests that bitcoin will follow gold's recent move to an all-time high. Source: Francesco Madonna.
“Global Liquidity is Finally Declining, Will We See the Great Bull Run in 2025?
According to CoinMarketCap data, at the time of publication, Bitcoin is trading at $60,431.
Investment strategist Lynn Alden is “not particularly surprised” by Bitcoin's lack of price action, explaining on Natalie Brunel's Coin Stories podcast on Aug. 19 that “global liquidity has been flat for two years.”
“It makes a lot of sense that Bitcoin is being hacked everywhere,” Alden said.
Alden He believes Bitcoin could surpass its current all-time high of $73,679 by 2025 when the market turns to a “pro-liquid environment.”
RELATED: Bitcoin Buyers Wait Below $58K As Japan Destroys Record Reserves
Meanwhile, Siegel says the US presidential election in November will be a critical moment for Bitcoin's price.
Regardless of the outcome of the election, they argue that macroeconomic conditions will remain the same for the next few years.
“Whichever candidate wins, we're going to be in for another four years of reckless fiscal policy,” he said.
“The story is that bitcoin hit the road at that point,” Siegel said.
Magazine: 11 Critical Moments in Ethereum's History That Made It the No. 2 Blockchain
