Bernstein Analysts Gautam Chhugani, Mahika Sapra and Sanskar Chindalia have provided insights into when the bitcoin price could turn bullish again and record new highs. The analysts also alluded to the impact that Former US President Donald Trump could have on bitcoin's trajectory.
When will bitcoin price turn bullish again?
Bernstein analysts mentioned in a research note on August 5 that they expect bitcoin and the broader cryptocurrency market to rally if stock markets recover due to a response from the Federal ReserveThey hope that this response will come in the form of Reduction of rates and the injection of more liquidity into the economy.
These analysts mentioned that the recent cryptocurrency market crash was not bitcoin’s fault this time, but was largely due to “fears in the stock markets” and other macroeconomic factors. The US stock market is currently facing a massive crash amid fears that the US economy may enter a recession.
Because of his bitcoin/bitcoin-us-equities-crypto/” rel=”nofollow noopener” target=”_blank”>historical correlation With these actions, bitcoin also experienced a wave of massive sales, which began over the weekend. This caused the flagship cryptocurrency to fall below $50,000 for the first time since February of this year. The broader cryptocurrency market followed suit, as altcoins experienced massive price drops.
Chhugani, Sapra and Chindalia predict that the macro side will continue to affect bitcoin and the cryptocurrency market for most of this third quarter. bitcoin-news/bitcoin-holds-ground-at-65700-amid-unchanged-fed-rates-anticipating-september-moves/” rel=”nofollow noopener” target=”_blank”>speculations that the Fed could cut interest rates at its next meeting bitcoin-price-stalls-ahead-fomc-meeting-how-to-trade/” rel=”nofollow noopener” target=”_blank”>FOMC Meeting in September, which will undoubtedly be positive for risk assets, including cryptocurrencies.
Interestingly, market experts such as prominent economist Jeremy Siegel have… x.com/SquawkCNBC/status/1820420112895074315″ rel=”nofollow” target=”_blank”>called The Fed is prepared to make an emergency rate cut, in addition to the planned cut that could come in September. However, it remains to be seen whether the Fed will succumb to such pressure, especially since it does not seem convinced that the US is close to a recession.
The US election is another factor that these analysts expect to impact btc and the broader cryptocurrency market. They stated that bitcoin “remains a ‘Trump trade’” and expect these crypto assets to remain range-bound until after the election. bitcoin is expected to react positively if Trump eventually wins, as he is seen as more crypto-friendly than the Democratic presidential candidate. Kamala Harris.
btc Outlook Remains Bullish
Despite the recent decline, these bitcoin-new-ath-by-year-end/” rel=”nofollow noopener” target=”_blank”>Bernstein Analysts They remain bullish on bitcoin in the long term, noting that there are no “incremental negatives for crypto” at the moment. They alluded to the trend of institutional adoption of btc through bitcoin Spot ETFoffering a bullish outlook as more institutional investors continue to adopt the flagship cryptocurrency.
These analysts expect more “Wirehouse Approvals in Q3 and Q4, providing further on-ramps for asset allocation to bitcoin.” Powerhouse Morgan Stanley has bitcoin-etfs.html” rel=”nofollow noopener” target=”_blank”>reportedly told his financial advisors that they can start offering these spot bitcoin ETFs to their wealthy clients starting August 7.
Featured image from PCMag, chart from TradingView.com
