Bitcoin (BTC) has surged to impressive new highs in 2024, reaching the critical $70,000 mark after a prolonged period of sideways trading.
However, the cryptocurrency is experiencing significant fluctuations, with occassional sharp corrections.
Renowned cryptocurrency analyst Micahel Van de Poppe highlights the current market sentiment, noting that
Bitcoin
is in an accumulation phase and still building momentum.
He emphasized that, despite high-interest rates diverting investments from riskier assets like cryptocurrencies into government bonds with rising yields, there remains a bullish outlook for Bitcoin. He pointed out that while Bitcoin may be achieving nominal all-time highs, these figures do not account for inflation, meaning that BTC isn’t truly setting new records in real terms.
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On a positive note, van de Poppe mentioned that the M2 money supply—a key indicator that has previously correlated with Bitcoin’s price—is on the rise. If this trend continues, it could boost market liquidity and attract investors back to risk assets like Bitcoin as they seek alternatives amid inflation.
Moreover, he noted that upcoming macroeconomic developments, including shifts in Federal Reserve policy, the efforts of BRICS nations to create an alternative currency, the potential for a Trump presidency, and rising inflows into Bitcoin exchange-traded funds (ETFs), could serve as bullish catalysts.
