Markets
Crypto Analyst Lists 10 Reasons to Invest Now
In a new publish On X, Miles Deutscher, a renowned cryptocurrency analyst with over half a million followers, proclaimed the current market condition as “one of the most bullish setups” he has seen in his six-year career in the cryptocurrency industry. Deutscher outlined ten key catalysts that he believes are poised to drive cryptocurrency markets higher in the near term.
“There has been a lot of talk recently about headwinds (Germans selling, Gox, macro, etc.). But the reality is that there is a LOT to look forward to,” Deutscher emphasized.
10 Reasons to Be Ultra Bullish on Cryptocurrencies
#1 German government BTC sales: Deutscher notes that the German government has Exhausted their BTC reserves to sell, which removes significant selling pressure in the market. “The great thing about the overhang is that once the sell-off is priced into the market, there is a floor to the bottom and room for the price to move higher. We still have Gox, but now there is light at the end of the tunnel,” he explained.
#2 Bitcoin ETF Inflows: According to Deutscher, the strong inflows into Bitcoin ETFs are underestimated. Last month, these ETFs recorded inflows surpassing US$1 billion, signaling sustained investor interest.
“I think many people are underestimating the magnitude of the long-term impact of BTC ETFs. It provides a strong passive offering to the market, and the appetite for ETFs is not going away (we had +$1b last month),” Deutscher added.
#3 US Presidential Election: The cryptocurrency analyst highlighted betting markets like Polymarket, where Trump is favored to win. A Trump presidency is seen as a positive catalyst for cryptocurrencies, given his administration’s perceived support for the industry.
#4 Trump’s defense at BTC 2024 conference: Deutscher also highlighted Trump’s scheduled appearance at the BTC 2024 conference, where he is expected to advocate for Bitcoin and cryptocurrencies more broadly. Rumor has it that Trump could make another big announcement. Bitcoin Magazine CEO David Bailey has floated the idea of making BTC a strategic reserve asset for the United States.
#5 FTX Refunds: FTX’s $16 billion repayment to creditors is a less discussed topic, but crucial factor. “Many of these recipients will likely return to the market, leading to new supply,” Deutscher predicts, suggesting a potential increase in buying activity in crypto markets.
#6 Global Liquidity Cycle: Deutscher also mentioned the correlation between global liquidity and crypto prices. “It’s crazy how correlated crypto (especially BTC) is with global liquidity. Interestingly, we’ve been tracking a 65-month cycle closely. This suggests a peak in late 2025,” Deutscher predicted.
#7 Spot ETH ETFs: O imminent release The launch of Spot ETH ETFs is another major catalyst. This marks the first time an altcoin has received such an investment vehicle, potentially expanding Ethereum’s market exposure and investor base dramatically.
#8 Goldman Sachs Tokenization Projects: Goldman Sachs’ involvement in three tokenization projects lends significant credibility to the crypto space. This institutional endorsement is expected to benefit a wide range of altcoins and related real-world asset (RWA) applications.
#9 Expected rate cuts: According to the CME FedWatch tool, the market is currently pricing in the likelihood of three rate cuts by the end of the year, with a 90% chance of a 25 basis point reduction in September. That could serve as a tailwind.
#10 Forward-thinking Markets: Finally, Deutscher emphasized the reflexive nature of crypto markets, where positive sentiment alone can trigger substantial rallies. “In the coming months, you will likely see the market price in these tailwinds. Since crypto is highly reflexive, a positive bid behind increased sentiment can, in and of itself, lead to a large rally,” Deutscher concluded.
At the time of writing, BTC was trading at $65,648.
Featured image created with DALL·E, chart from TradingView.com