Fintech
When and why Bitcoin and Altcoins will rise
Despite the misfortune of many crypto analysts, Rekt Fencer, a cryptocurrency expert, believes that the market is on the verge of something huge. In his latest thread on X, he explains why patience and a long-term view could be key for investors.
Post-halving analysis of BTC: a natural phase
Many see That of Bitcoin post-halving consolidation as a normal phase. With a 13% drop from the highs and 15 weeks of consolidation, this period of low volatility is typical after significant price movements.
Rekt Fencer argues that this phase, while frustrating, is essential and mirrors past cycles of 2017 and 2021. Historically, the accumulation phase lasted 4-5 months before a parabolic move.
Indicators that point to the future growth of the cryptocurrency market
Rekt Fencer highlights several key indicators:
- Fed Reserve Balance Sheet: The Federal Reserve’s total assets chart is bottoming out, suggesting future liquidity injections, which will benefit cryptocurrencies.
- Stablecoin Index: Currently, liquidity is lower than in previous cycles, indicating growth potential as new capital enters the market.
- Venture capital funding: With investment currently 3-4x lower than 2021 peaks, there is room for significant funding increases during the next bull run.
- Global Net Liquidity Index: The assets of major central banks and the Fed’s reserves are consolidating, signaling a possible future increase in liquidity.
Political and regulatory catalysts for the future growth of cryptocurrencies
Rekt Fencer points to upcoming political events and regulatory changes as bullish pressures:
- US elections 2024: Cryptocurrencies have become a political issue, with Trump vowing to support the sector.
- Rate reductions: Countries like Canada and Switzerland have already cut rates, and the United States could follow.
Altcoin Season Predictions
For altcoin holders, Rekt Fencer advises against selling now. He notes that BTC’s dominance has remained stable, but a decline could signal its onset high season.
The launch of an ETH ETFperhaps already in July, and the next SOL ETF could further clarify altcoin trends.
Rekt Fencer remains bullish despite current market sentiment. According to him, remaining patient and maintaining investments could be very rewarding as the market goes through its natural cycle and prepares for significant growth opportunities.
While many proclaim the bull run to be over, the combination of indicators, upcoming political events, and potential regulatory changes make for a compelling reason to continue investing in Bitcoin and Altcoins.
Read also: Q3 and Q4 poised for massive Altcoin rally suggest top crypto analysts
Vignesh SG
Vignesh is a young journalist with decades of experience. A proud alumnus of IIJNM, Bangalore, he spent six years as a sub-editor for a leading business magazine, published from Kerala. His interest in futuristic technologies led him to work at a US-based software company specializing in Web3, Blockchain and AI. This period inspired him to see the future of journalism through the lens of next-generation technologies. Now he covers the crypto scene for Coinpedia, discovering a vibrant new world where technology and journalism converge.