Crypto Updates

Why Bitcoin Entered A “Perfect Storm”


The price of Bitcoin might be losing bullish momentum in the short term, but on higher timeframes, the cryptocurrency is likely to extend its current rally. At least, this is part of what we spoke with Dave Weisberger, co-founder and co-CEO at CoinRoutes, a liquidity and algorithmic trading tool provider for the crypto market.

As of this writing, Bitcoin trades at $34,200 with a 2% loss in the last 24 hours. As the bullish momentum seems to fade, some analysts expect BTC to return to the critical support area of around $33,000. This area must hold if BTC bulls want to prevent a more extensive correction.

BTC’s price trends to the upside on the daily chart. Source: BTCUSDT on Tradingview

Bitcoin Becoming Digital Gold, Low Selling, And The Potential For 20x Profits

On the back of the current macroeconomic landscape, Bitcoin has become more relevant as a global financial asset, a store-of-value, and “gold 2.0,” according to CoinRoutes’ co-founder. Weisberger has been sharing his bullish thesis on cryptocurrency and the impact of the spot market on the current rally.

During our conversation, we spoke about the Israel conflict, the current market structure, and the reasons brewing a perfect storm for BTC. This is what he told us:

Q: With a delicate situation in Israel, high inflation, and talks about a potential economic recession, How is the current macroeconomic landscape impacting the Bitcoin price?

A: I think that the easiest way to look at it is to understand the famous quote from Ram Emanuel when you’re in the government, never let a good emergency go to waste. The fact is I don’t believe the Federal Reserve and the treasury have a whole lot of choice anymore. There’s really only one way out of the current macro environment in a real sense. They effectively have two choices. Door number one is to deregulate like crazy, cut taxes like crazy and hope to grow your way out of it. Choice number two is choose the Japanese approach, which is to manage the yield curve to allow the government to continue to function and kick the can down the road so it’s somebody else’s problem later. I actually, I think that there are a couple of candidates that talk about doing door number one, but none of them are in power and none of them are likely to win.

And even if they did win, they’re unlikely to have the congressional support to do the massive amount of deregulation it would take to lean into AI and digital assets…

Click Here to Read the Full Original Article at NewsBTC…