bitcoin-bottom-20-decline/” rel=”nofollow”>Cryptography expert Michaël van de Poppe has made a bullish case for bitcoin as he alluded to bitcoin-dip-federal-reserve-turns-dovish/” rel=”nofollow”>macroeconomic factors That could soon work in the flagship cryptocurrency's favor. In line with this, he urged bitcoin investors to take action in the face of a parabolic rise on the horizon.
Imminent Quantitative Easing Would Be Good for bitcoin
De Poppe x.com/CryptoMichNL/status/1786085746840936497″ rel=”nofollow”>He suggested in a post by x (formerly twitter) that bitcoin will rise thanks to quantitative easing (QE), which he anticipates is “near.” He pointed out that crypto-industry-major-victory-federal-reserve/” rel=”nofollow”>the Federal Reserve has already begun “reversing Treasury bond buybacks and is tapering QT (quantitative tightening).” He claims that this happens because bitcoin-inflation-rate-battle-gold-scarcest-asset/” rel=”nofollow”>economic data has worsened, putting the United States at risk of a recession.
Therefore, the Fed seeks to avoid this recession by buying back bitcoin-rally/” rel=”nofollow”>long-term government bonds and inject liquidity into the financial system. As the crypto expert predicts, this could be good as it will force the Fed to take a more dovish stance and possibly lower interest rates, driving crypto-funds-interest-rate/” rel=”nofollow”>investor confidence bet on risky assets like bitcoin.
Van de Popper further predicts that this quantitative easing will become evident in data released in the coming months. In line with this, he advised investors to hold long positions in bitcoin. It is worth noting that bitcoin fell to only $57,000 Before the last FOMC meeting, many investors seemed to have anticipated a hawkish stance from the Federal Reserve.
However, as crypto expert says x.com/CryptoMichNL/status/1785732339680579786″ rel=”nofollow”>noted, rates remain unchanged and Federal Reserve Chair Jerome Powell raised the possibility of a rate cut as early as June. Given bitcoin's price recovery since then, this development appears to have already revived bullish sentiment among investors.
What to expect in the future
In other x.com/CryptoMichNL/status/1785746026952851526″ rel=”nofollow”>x publication, Van de Popper revealed his expectations for the future of the cryptocurrency market. He stated that bitcoin will consolidate and move sideways (possibly before QE which will increase its price in the coming months). Meanwhile, also wait bitcoin-halving-could-provide-a-big-boost-to-these-altcoins-growth/” rel=”nofollow”>Altcoins to “exceed widely and the rotation is activated.”
The cryptography expert had previously He echoed a similar sentiment when he stated that he expects altcoins to bounce off their bitcoin peers while bitcoin faces a bitcoin-accumulation-strong-amidst-consolidation/” rel=”nofollow”>consolidation period which does not expect to change in the “coming months”.
Back then, he also mentioned that there would be a narrative shift toward ethereum-to-10000-programmed/” rel=”nofollow”>ethereumand reaffirmed this belief in a more recent report x.com/CryptoMichNL/status/1786108397601054894″ rel=”nofollow”>x publicationstating that he expects a lot from the second largest crypto token by market cap.
At the time of writing, bitcoin is trading at around $59,100, up more than 2% in the last 24 hours, according to bitcoin/” rel=”nofollow”>data from CoinMarketCap.
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btc bulls reclaim control of price | Source: BTCUSD on Tradingview.com
Featured image by Seu Dinheiro, chart from Tradingview.com
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