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BTC/USD Bitcoin is recovering from its six-month low and institutional product activity is increasing, with more analysts issuing bullish forecasts for the months ahead. DeFi researcher and educator Michael Nadeau summarizes the most powerful reasons for optimism Bitcoiners can have right now.
Sellers Are Done, ETFs Are Gaining Ground, What Else? 10 Bullish Catalysts According to a Researcher
Bitcoin BTC/USD Bitcoin is coming off its first major correction of this cycle, and the most powerful drivers of selling pressure are either liquidating or finally running out of funds. This is one of the positive catalysts for the largest cryptocurrency and the segment as a whole, analyst Michael Nadeau says in a recent thread.
So now you’re going to tell me that:
1. Bitcoin just suffered its first 33% correction of the bull run (two previous corrections of over 20%). SOL corrected 45% (two previous corrections of over 45%). ETH corrected 38% (two previous corrections of 30% and 32%).
2. Financing rates have been fully reset. Offer… pic.twitter.com/4uxLLwqE09— Michael Nadeau (@JustDeauIt) August 7, 2024
Against this backdrop, he also saw a full reset in funding rates, activation of long-term holders after taking profits in Q2 2024, and capitulation of miners losing ground.
Sentiment in the altcoin segment is very pessimistic, which is regularly interpreted as a “necessary” phase before the next leg of a rally.
In macroeconomic terms, there are new signs of weakening of national fiat currencies. In the past, this has always generated interest in Bitcoin BTC/USD as a hedge against inflation and macroeconomic instability.
Additionally, with the launch of Bitcoin and Ethereum spot ETFs, large institutional holders of BTC and ETH are actively selling their bags to the new generation of investors, further evidence of strong interest.
As U.Today previously reported, prominent macroeconomic economist Raoul Pal stressed that he did not sell any cryptocurrencies during the most painful phase of the collapse.
Q4 2020 Pattern: What’s Similar?
Real Vision’s CEO called the latest bloodbath a mere “reshuffle” and only recommended avoiding leverage and sharing FOMO.
Last but not least, Nadeau pointed out that all the CeFi majors that contributed to the over-leveraging of the last cycle, such as BlockFi, Genesis and Celsius, are simply no longer there.
He therefore sees no reason to be pessimistic about BTC and other cryptocurrencies in the long term:
You’re going to tell me all this? And you want me to be pessimistic?
He concluded that given all the fear in the market, what is happening today can be compared to the beginning of Q4 2020, when Paul Tudor Jones called BTC the “fastest horse” and Michael Saylor started the MicroStrategy Bitcoin saga.
At the time, Bitcoin BTC/USD The price of Bitcoin was in the range of $10,000 to $15,000, while today it is at $58,000, which represents an increase of almost 1.2% in the last 24 hours.
