According to the Bloomberg Intelligence analyst Jamie Coutts, it’s dangerous to be in Bitcoin right now. The analyst bases this on the fact that global liquidity is in contraction. Simply put, this means that there is less money in circulation, which generally puts negative pressure on the Bitcoin price.

Jamie tweeted:


Bloomberg’s trend model indicates that selling is the best choice from the Bitcoin price of $ 29,500. Since then, the Bitcoin price has fallen by about 10 percent. At the time of writing, Bitcoin is trading at $26,319. This means that the price has recovered somewhat from the misery of the past few days. For the past 24 hours there is an increase of 0.66 percent on the boards; while for the past seven days it is an increase of 2.30 percent.

In that respect, the selling pressure also seems to be slowly disappearing, but according to Coutts and Bloomberg it is still better to be bearish (and therefore cautious) at the moment when it comes to Bitcoin. For Bitcoin to rise again, an expansion of global liquidity is needed, according to Coutts. For the time being, however, it does not seem to be happening, especially when he looks at the United States of America. The US central bank is still battling inflation and does not appear to be changing course for the time being.

That fight against inflation means that they try to allow as little new money as possible to flow into the economy. After all, new money means that there is upward pressure on the price level (inflation). In that regard, it may take some time before Bitcoin can start another bullish episode. It seems like we really need to be patient until the April 2024 halving and hope that the US Securities and Exchange Commission (SEC) approves a Spot Bitcoin ETF soon.

Other cryptocurrencies:

At a time when the crypto market is characterized by a downward trend, a thorough analysis is crucial. Although both Bitcoin (BTC) and the majority of altcoins are struggling, Cardano and Dogecoin are not easily defeated. With market capitalizations that take them to eighth and ninth place respectively, they continue to play a significant role in the sector. DOGE is trading at around $0.06 per token right now, while ADA is trading at around $0.25.

In a direct comparison between Cardano and Dogecoin, Cardano seems to be the stronger candidate at the moment. Despite being seen as a “joke” coin, Dogecoin has struggled to develop and innovate, especially compared to competitors such as Shiba Inu (SHIB) who recently introduced the Layer-2 network, Shibarium. On the other hand, Cardano, although slow, has a well-defined strategy and a clear vision. It focuses on developing a robust cryptocurrency ecosystem that is not only flexible and sustainable, but also provides a suitable platform for a wide range of decentralized applications.

But it’s important to recognize that Dogecoin derives much of its value from the public support of figures such as Elon Musk, which introduces a degree of volatility. Despite the slower progress, Cardano appears to be a more stable long-term option, with 2024 or 2025 as possible turning points for the project. However, as always in the investing world, nothing comes with a guarantee.

By Crahz

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