Bitcoin is poised for a significant surge at this very moment due to a certain factor.
The Current State of Bitcoin
Bitcoin, the world’s most popular cryptocurrency, has had a tumultuous journey since its inception in 2009. However, in recent months, Bitcoin has shown a remarkable recovery after experiencing a massive price drop in 2018. As of this writing, Bitcoin is trading at around $10,000 per coin – an excellent improvement over its lowest point of around $3,000.
Several factors have contributed to the recent rise of Bitcoin’s value. Firstly, the increasing mainstream acceptance of blockchain technology and cryptocurrencies as legitimate investments and payment methods has helped to boost investor confidence in Bitcoin. Secondly, the recent economic uncertainties created by trade tensions and political instability have led many investors to seek refuge in assets like gold and Bitcoin.
These factors have come together to create an environment where Bitcoin is poised for a significant surge right now. In this article, we will explore one such factor that could be instrumental in unleashing a massive bull run for Bitcoin.
Bitcoin is Poised for a Significant Surge
The cryptocurrency market has been experiencing some turbulence in the last few months. However, Bitcoin is once again showing its resilience and stability as it bounces back from the recent market downturn. Bitcoin’s current price levels indicate that it may be poised for a significant surge in the coming weeks due to a particular factor.
Bitcoin bulls are eying a potential bull run, fueled by institutional investors’ interest in the cryptocurrency. Large hedge funds and traditional financial institutions are increasingly allocating capital to Bitcoin as they recognize its value as an asset class with strong growth potential. The growing adoption of Bitcoin by institutional investors is driving up demand, ultimately leading to price appreciation.
US Unlikely to Default, Positive News
It seems that the US is unlikely to default, which is positive news. Biden and McCarthy have reached a deal, and now they will draft it and send it to Congress for approval. It is highly likely to be approved since both men represent their respective parties and have sufficient votes. Barring any unexpected events, this should be a done deal. The US market rallied on Friday due to this development, and I expect the positive trend to continue this week. Resolving the issue of default is crucial because nobody wants to see the US in that position.
Market Opportunity: Printing More Money
Once this matter is resolved, the US will have the ability to print more money. Many people consider this as a market opportunity. Whenever events like this occur, it is often seen as a reason to invest and buy in the US market. The current debt ceiling can continue indefinitely assuming we don’t reach it again. However, the next discussion about the debt ceiling will likely happen in 2025, as it is expected that we will face this issue again in the near future. It seems that we will now have a debt ceiling crisis every two years due to excessive spending without significant budget cuts. This continuous cycle adds to inflation. Nonetheless, many people view this as an opportunity to buy, especially if the Federal Reserve (FED) starts reversing or pivoting its policies later this year. Although there are concerns about the FED being aggressive in raising rates due to inflation and increased money printing, there is still a possibility of a buying opportunity after this issue is resolved.
Significant Pump of 5,000 Percent
Now let’s talk about the significant pump of 5,000 percent. Tech Dev shared some interesting insights regarding the 20-weekly EMA (Exponential Moving Average) and the 200-weekly EMA. The green line represents the 20-weekly EMA, while the red line represents the 200-weekly EMA. If we observe the crossover pattern, the last time it occurred was in 2016 when Bitcoin dropped to around $140 and then recovered to around $300. That crossover pattern did not happen in 2018 when Bitcoin fell to $3,800 either. However, in 2023, we have just witnessed a crossover with the green line crossing above the red line. The last time we had a similar crossover was in 2016, which led to a significant run-up in Bitcoin’s price from $300 to $20,000. If we are about to start a new run, as indicated by this pattern, we may potentially witness a 5,000 percent gain. It is important to note that this calculation does not even consider the increase from $300 to $69,000. Therefore, if this pattern continues, there is a strong possibility of substantial gains in the future.
Monthly Performance and Scarcity Factor
Regarding the monthly performance, historically, May has been a challenging month. However, the outcome in June depends on the current week’s performance. If the market remains bullish and carries its positive momentum into June, it can be a very favorable month. Additionally, July has been known for double-digit gains over the years, making it an anticipated month. Looking ahead, around 95 percent of Bitcoin supply will be mined in a couple of years. In the next 10 years, 99 percent of Bitcoin will be mined. This scarcity factor leads to fierce competition among miners. If we compare this situation with other commodities like gold or oil, where similar scarcity existed, the prices of those commodities skyrocketed. It’s crucial