Bitcoin is going through a mini pump from its past 26k-27k crabbing over the past couple of months. It's now sitting at high 29k and it even touched 30k for the first time in a while.
This comes after a series of events that, to me, are a bit sus and bring our my inner conspiranoic schizo nature:
In just one week:
- CoinTelegraph makes a mistake and announces an ETF was approved, BTC responds with a huge pump from 26K to 28k that retraced completely after a few minutes when the news were debunked.
- In the very same day, Larry Fink calls crypto “flight to quality” in live TV, a move that is just too coincidental to my taste.
- McCarthy backs Tom Emmer as speaker of the house. Emmer is known to be highly pro-crypto.
One could say that the signs are all there and everything around us points towards a massive bull run at one point later this year or somewhere around 2024.
Some people are calling it the last real life-changing bull run for crypto. They might be right, crypto is reaching a stabilization and balance point where we are no longer seeing alts do 500x and BTC/ETH are growing less after each cycle.
But this potential bull run has a ton of catalysts that could drive Bitcoin to levels we have not even begun to image, let's go through a few of them:
Bitcoin Spot ETF Approval:
I made a longer analysis on what this means for Bitcoin and Crypto in general, you can check it out here but if you want the TLDR, here it goes.
An approval of a Bitcoin Spot ETF could open doors for institutional and retail investors, providing regulated access to Bitcoin without owning it directly. Similar to the impact of gold ETFs on gold prices, significant capital inflow into Bitcoin is possible - most likely, ensured.
Bitcoin Halving:
@melbourneswest made a review on Bitcoin's halving and the impact it can have on altcoins, you can read it here, but if you are feeling lazy, here's a brief explanation of what the halving/halvening means for Bitcoin.
Historically, the Bitcoin halvings are the biggest catalyst for growth and number go up. Yes yes, past performance doesn't guarantee future results, but we are also facing a self fulfilling prophecy scenario where even if the fundamentals and the halvening itself might not impact Bitcoin's price, the market will most likely try to act instead of react and which will result in a huge pump in price, just because people will FOMO into the halvening pump, effectively pushing the price up and activating a bull run.
Quantitative Easing Hedge:
This one isn't as impactful as the two above, but it does play a role in how the market is going to react to Bitcoin over the next 6-12 months. I don't have a post that expands on this so you're bound to learn about this scenario right now.
Bitcoin's performance during periods of quantitative easing makes it the perfect asset to hedge against inflation and currency devaluation, especially after the past 3 years where money printer has been going brrr for way too long and way too much.
Quantitative easing is a monetary policy tool utilized by central banks (ugh) to stimulate economic growth, and it often involves an increase in the money supply (brr). This often leads to devaluation of fiat, causing inflation over time.
Bitcoin operates exactly as an opposite force to this: Its finite supply of 21 million coins inherently limits the potential for devaluation. You cannot print more just to stimulate the economy.
FASB Fair Value Accounting:
I made a post a couple of weeks ago explaining what the hell FASB is, check it out here. If you are still here but haven't clicked on the links, are you really learning? Either way, here's a dumbed down brief of my post.
Adoption of fair value accounting for crypto may increase small and big corporate entities holding Bitcoin because it becomes legal and easier to own bitcoin and not lose tons of money in terms of taxes theft. The FASB encourages institutional adoption on a mid-term scale.
Black Swan Events:
Look at Russia, Venezuela, Nigeria and even El Salvador.
Bitcoin’s performance against currencies of countries experiencing economic instability highlights its potential role as a “digital gold.” In times of economic uncertainty, Bitcoin could serve as a refuge for capital.
I'm expecting a bullrun.
I have no idea how big it will be or how much it will impact the way I live, but I can tell you one thing:
I'm balls deep in Crypto, mainly BTC, Hive, Leo and a couple other small cap alts.
I'm getting ready, Crypto Twitter is getting ready, /biz is getting ready, hell, even grandma is getting ready.
