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Bitcoinsensus
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Will Q4 Bullish for Bitcoin, and the Impact of Additional China and U.S. Liquidity
- Markets and gold are experiencing record highs after interest rate cuts from the FED.
- Interest rates are being cut by China, and everything is going in huge additional liquidity.
- This should greatly boost an already historically favorable Q4 for Bitcoin.
- However, Bitcoin's growth momentum is not as steaming as it should be for several reasons.
- Bitcoin has not reached its all-time high as the S&P 500 indexes after the US FED decision.
- The correlation between the US dollar index and Bitcoin's price is strong during dollar declines.
- Bitcoin's volatile nature and undervaluation models show volatility is contingent on institutional investors adopting the cryptocurrency market-wide.
- Although retail investors remain slow relative to institutional investors, the cryptocurrency market could potentially be heavily influenced by institutional investors, and thus, following the crowd can be risky.
- Finally, additional liquidity and stimulus by China and the US may take longer to be felt in the cryptocurrency market, with risk markets like stocks and cryptocurrencies requiring time to grow.
- We need a more comprehensive assessment of factors that will contribute to the crypto market, such as additional liquidity and institutional adoption.
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