Bitcoin Shrugs Off Uncertainty, Prepares for Bull Run
Ulrik Lykke | Jul 07, 2023 07:56
Global markets are still facing headwinds, with the latest Fed minutes revealing that the decision to pause the 10-month consecutive rate hike was vigorously debated.
Following the hawkish sentiment of the Fed, interest rate futures have risen significantly this week, now pricing in a 94% chance of a 25 bps rate hike in July and a 10% chance of three more hikes this year.
h2 Job Markets are Still Hot/h2While debates of a recession are still debated, the latest US job report disclosed 497,000 new jobs in the private sector - More than double what was anticipated by Dow Jones analysts.
Interestingly, the stock market has managed to perform well despite the uncertainty. The S&P 500 and Nasdaq have both recorded extremely positive gains year-to-date, with the former up 14% and the latter impressively gaining 30.8%.
h2 Bitcoin Ripe for Another Bull Run?/h2
Bitcoin, the pace-setter of the digital asset market, is displaying considerable strength and signaling that the range between $29.5K to $31.5K could serve as another accumulation zone before the next leg up.
The long-term BTC price chart shows a pattern that could align well with previous market cycle bottoms.
Moreover, there are several trends that are particularly intriguing to observe, as they have historically indicated the start of a bull market. These include:
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Bitcoin's correlation with US stocks continues to decrease.
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BTC’s increased market dominance compared to other digital assets.
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Computational power on the Bitcoin network continues to rise.
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Long-term HODL’ers continue to accumulate BTC with the highest number of wallets containing 0.1 and 1 BTC ever recorded.
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Continued commitments from major institutional players continue to surface.
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