Market expert Mike Alfred has insisted that it is insane for analysts and charters to speculate on lower Bitcoin prices at this time, given favorable economic metrics.
Bitcoin, the largest cryptocurrency by market cap, capitulated below $59,000 on Thursday amidst a sell-off catalyzed by a hawkish macroeconomic outturn. For context, the US Consumer Price Index came in hotter than expected, raising concerns that the Federal Reserve may not cut rates next month.
Amidst the chaos, some analysts have predicted that Bitcoin will see lower prices, with targets like $57,500 and sub-$50,000 emerging. However, the CEO of Digital Assets Data, Mike Alfred, argues that it is insane to speculate on lower Bitcoin prices at this point.
Market Expert Cites Favorable Macroeconomics
In a tweet today, Alfred stated that key market metrics point to an impending Bitcoin surge, in contrast to the hawkish outlook from some “chat bros.” He noted that economic parameters like yields and inflation are ticking in favor of Bitcoin.
Alfred noted that US Treasury yields are surging, a parameter that usually precedes an interest rate slash. For context, the US 10-Year Treasury appreciated almost 4.1% yesterday after the US CPI data.
Also, the market veteran cited a breakout in the global monetary base (M2), which has grown substantially in the past four months. The global M2 surged from $104 trillion in June to over $108 trillion this month, and Alfred expects Bitcoin to surge with it.
Meanwhile, mixed reactions continue to swell among speculators on the Fed’s next line of action in November. With analysts favoring a 0.25% rate cut, Atlanta Federal Reserve Bank president Raphael Bostic noted he was open to pausing a slash.
However, Alfred pointed to growing sentiments around a rate cut while noting that Bitcoin would not see lower prices. Notably, a reduction in interest rates increases investors’ risk appetite, favoring assets like Bitcoin.
Investors Buying the Dip
Despite the FUD surrounding the recent market downturn, traders bought the Bitcoin dip. Data from Santiment shows that weighted sentiments flipped super bullish when the premier asset dipped to a 3-month low of $58,900.
Investors saw the capitulation as an opportunity to acquire Bitcoin at a lower price. Particularly, the purchases were due to optimism that a Fed rate cut in November would push the asset’s price even higher.
It bears mentioning that Standard Chartered recommended buying Bitcoin if it dipped below $60,000. The firm noted it would be a good buy-in opportunity as the asset is headed for $200,000 in 2025.
Meanwhile, Bitcoin has rebounded from yesterday’s lows, trading at $60,860 at the time of writing.
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