BIT Blog

Analysts' Insights

Analysts' Insights

Bitcoin will attempt 30k this week. Here is why

👇 1) Bitcoin is now trading at the ‘buy cycle bottom,’ which we identified at the end of last year. This signal has worked three times and appears to set up Bitcoin for the next leg higher.

👇 2) In December, we proposed that US inflation will cause a massive Bitcoin rally in 2023. While there are doubters out there, inflation has fallen sharply, and the next inflation data point will be released on Wednesday (April 12). This could add fuel to the Bitcoin party and cause another rally attempt to 30,000.

👇 3) While some have even worried that a country-wide deposit guarantee would cause hyperinflation, history shows that banking stress situations are deflationary.

👇 4) Short-end rates are pricing in 116 basis points of rate cuts; while this is ambitious, the rate hiking cycle is likely over – as we predicted.

👇 5) Indeed, the 10yr bond yield is trading at the lowest level since September 2022 and has materially broken the 200-day moving average – a group generally associated with a bear market in product.

👇 6) This is good news for tech and crypto assets. Since early March 2023, Google has outperformed Caterpillar by +42%. It is now quite evident that tech is outperforming inflation proxies.

👇 7) Coincidently, on April 12, the Shanghai upgrade will take place, allowing network validators to withdraw funds that have been locked to secure the network since December 2020.

👇 8) Ethereum traded at 600 in December 2020, but most of the ETH has been staked at much higher levels – around 2,200. So it appears unlikely that stakers are willing to lock in their losses. They might rather wait, especially as only a tiny amount of ETH has been staked, compared to the average L1 blockchain.

👇 9) Liquid staking project Lido continues to see inflows. This is a sign that more ETH will likely be staked this week and during the coming weeks.

👇 10) This is the time to be bullish.

How are you positioned?

Join now for more insights around crypto!

Sign Up Now