Markets
When and why Bitcoin and Altcoins will rise
Despite the pessimism of many crypto analysts, Rekt Fencer, a crypto expert, believes that the market is on the verge of something huge. In his latest thread on X, he explains why patience and a long-term view could be essential for investors.
Post-halving analysis of BTC: a natural phase
Many see Bitcoin Consolidation after halving is a normal phase. With a 13% decline from the highs and 15 weeks of consolidation, this period of low volatility is typical after large price movements.
Rekt Fencer argues that this phase, although frustrating, is essential and reflects past cycles of 2017 and 2021. Historically, the accumulation phase lasted 4-5 months before a parabolic move.
Indicators Pointing Toward Future Crypto Market Growth
Rekt Fencer highlights several key indicators:
- Federal Reserve Balance Sheet: The Federal Reserve’s total assets chart is touching a low point, suggesting future liquidity injections, which will benefit crypto.
- Stablecoin Index: Currently, liquidity is lower than in previous cycles, indicating potential for growth as new capital enters the market.
- Venture capital financing: With investments currently 3-4 times lower than 2021 highs, there is potential to significantly increase funding during the next bull run.
- Global Net Liquidity Index: The assets of major central banks and the FED’s reserves are consolidating, signaling a possible future increase in liquidity.
Policy and Regulatory Catalysts for Future Crypto Growth
Rekt Fencer highlights upcoming political events and regulatory changes as bullish drivers:
- US Elections 2024: Crypto has become a political issue, with Trump promising to support the industry.
- Lower rates: Countries like Canada and Switzerland have already cut rates, and the United States could follow.
Altcoin Season Predictions
For altcoin holders, Rekt Fencer advises against selling now. He notes that BTC dominance has remained stable, but a decline could signal the start of other season.
The launch of an ETH ETFmaybe as early as July, and the next SOL ETF could further clarify altcoin trends.
Rekt Fencer remains optimistic despite current market sentiment. He suggests that remaining patient and holding on to your investments could prove very rewarding as the market moves through its natural cycle and prepares for significant growth opportunities.
Although many are proclaiming the end of the uptrend, the combination of indicators, upcoming political events, and potential regulatory changes make compelling arguments for continued investment in Bitcoin and Altcoins.
Read also: Q3 and Q4 Poised for Massive Altcoin Rally Suggests Top Crypto Analyst
Vignesh SG
Vignesh is a young journalist with a decade of experience. A proud alumnus of IIJNM, Bengaluru, he spent six years as a sub-editor for a leading business magazine, published in Kerala. His interest in futuristic technologies led him to join a US-based software company specializing in Web3, Blockchain and AI. This stint inspired him to consider the future of journalism through the lens of next-generation technologies. Today, he covers the crypto scene for Coinpedia, discovering a dynamic new world where technology and journalism converge.