A leading crypto strategist believes the digital asset market is positioned to witness a bullish continuation even if Bitcoin (BTC) trades below $100,000.
Pseudonymous analyst The Flow Horse tells his 251,400 followers on the social media platform
“There is a chance between now and the second week of January that things could pop.”
The analyst’s outlook stems from the idea that traders believe the incoming presidential administration of Donald Trump will be incredibly bullish on crypto. Trump has indicated that under his administration the US government’s anti-crypto agenda would end, and in fact he has done just that suggested a Bitcoin treasury to get the country’s finances in order.
But the analyst emphasizes that his predicted window for crypto rallies will close just days before Trump’s inauguration. He argues that traders are likely to be in for a rude awakening after Trump takes over the White House on January 20, 2025
“The market had, to some extent, priced in a very fairytale scenario – one in which the United States creates a Bitcoin reserve and Lummis’s bill is passed smoothly.
However, as reality sets in, that optimistic positioning is likely to fade, especially as it becomes clear that Trump will face significant resistance in implementing many of his initiatives.
This is a good thing.”
The analyst also warns that he thinks crypto will push a local top around the time Trump officially begins his second term as US president.
“It’s as if I see that no one is open to the idea that we are very close (weeks to a quarter) to a nice top.
They are just people who have the impression that the markets should go up thanks to Trump.”
Looking at the macro landscape, The Flow Horse say Capital is still expensive compared to the 2020 cycle, when the Fed had to cut rates to near zero due to the Covid-19 pandemic.
“If you believe this cycle will vastly outpace the last one, you should have a clear thesis explaining how this is being achieved without the support of the robust credit markets that helped the last one.”
At the time of writing, Bitcoin is trading at $94,455.
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Featured image: Shutterstock/wangmando/phanurak rubpol