A trader who joined the crypto breakout earlier this year warns that Bitcoin (BTC) could see muted price movements over an extended period of time.
In a new strategy session, pseudonymous analyst DonAlt tells his 52,800 YouTube subscribers that Bitcoin is barely moving despite the launch of PayPal’s dollar-backed stablecoin PYUSD, a telltale sign.
The crypto strategist adds that even stock market volatility is not enough to revive BTC price action.
“The PayPal news, when the market was trading fairly, would have pushed the price up. PayPal is just, “Oh, we want to get into the stablecoin game.” It doesn’t really have to have anything to do with Bitcoin or ETH or any of the other coins, just having interest from PayPal would have boosted the market by 10%.
But it doesn’t, and then you get the ETF lag. It’s not necessarily a big surprise, but it’s not a price move either… These daily candles literally like 1% or 2% moves and that’s Bitcoin when the S&P is trading like crazy.”
DonAlt goes on to say that Bitcoin’s choppy conditions could continue for the next six months.
“The market just isn’t moving, and it doesn’t really look like it wants to. I saw that this would continue for the next six months.”
The crypto analyst says one thing that could restore Bitcoin’s volatility and bullish momentum is the reversal of the Federal Reserve’s tight monetary policy, similar to what happened in 2020 when the central bank lowered interest rates to near 0 % pushed in response to the Covid crisis.
“I think it will be boring for now. If you see something like Covid-like again in a response from governments, just another giga-long, but until then it’s kind of long-winded. I want to see big, big power and that crypto specifically before I’m actually too interested because I think the transaction is done.
At the time of writing, Bitcoin is worth $29,248.
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Featured image: Shutterstock/Tithi Luadthong