\n
<\/p>\n
Bitcoin\u2019s October pullback reflects a \u201cliquidity-driven mid-cycle reset,\u201d said analysts Nathan Frankovitz and Matthew Sigel in a VanEck market report on Wednesday.<\/p>\n
\n\u201cLeverage has normalized, on-chain activity is rising, and digital assets\u2019 macro role continues to strengthen,\u201d they added<\/a>.<\/p>\n<\/blockquote>\n
Bitcoin is currently trading down 14% from its all-time high and has failed to recover from the record leverage flush earlier this month.<\/p>\n
With leverage now at the 61st percentile and prices near one-year lows relative to gold, this appears to be a mid-cycle correction rather than the start of a bear market, the analysts noted.<\/p>\n
No Bear Market Yet<\/h2>\n
Global M2 growth explains over half of Bitcoin\u2019s price variance, reinforcing its role as an anti-money printing asset. According to MacroMicro, global M2 supply has grown<\/a> by 6.8% since the beginning of the year as central banks continue to print money.\u00a0The report identified two factors in addition to M2 supply that influence Bitcoin\u2019s price and market movements: global liquidity, leverage, and on-chain activity.<\/p>\n
Nearly 73% of Bitcoin\u2019s price variance since October 2020 has been explained by changes in futures open interest, while there are strong correlations between blockchain revenues and token prices, which demonstrate real adoption.<\/p>\n
The investment manager said<\/a> it wasn\u2019t willing to bet against Bitcoin with fiat debasement accelerating in recent years.<\/p>\n
\n\u201cWith Bitcoin comprising ~2% of global money supply, we believe digital assets can play an increasingly important role in investment portfolios; arguably, owning less than ~2% Bitcoin or other digital assets is implicitly expressing a short position on the asset class.\u201d<\/p>\n<\/blockquote>\n
Caution: Volatility Ahead<\/h2>\n
The sentiment has been echoed by several analysts recently who opined that the bull market is not over yet.\u00a0However, there is still a lot of volatility ahead, said<\/a> investor Ted Pillows.<\/p>\n
US Treasury Secretary Scott Bessent expects lower inflation next month, which means this week\u2019s CPI report could disappoint, he added.<\/p>\n
\n\u201cHigh inflation usually pressures crypto, since it raises expectations for tighter monetary policy. If CPI comes in lower than expected, crypto could bounce.\u201d<\/p>\n<\/blockquote>\n
MN Fund founder Micha\u00ebl van de Poppe echoed<\/a> the sentiment, stating, \u201cmarkets continue to fumble until the next big macroeconomic event comes in: CPI.\u201d<\/p>\n
\n\u201cThat\u2019s going to provide a direction for the markets of Bitcoin, and also what we could expect from the Fed.\u201d<\/p>\n<\/blockquote>\n
The delayed<\/a> CPI report for September is scheduled<\/a> for release on Friday.<\/p>\n
The post Global M2 Growth Signals Bitcoin Bull Market Intact Despite October Crash, Says VanEck<\/a> appeared first on CryptoPotato<\/a>.<\/p>\n\n
Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Bitcoin\u2019s October pullback reflects a \u201cliquidity-driven mid-cycle reset,\u201d said analysts Nathan Frankovitz and Matthew Sigel in a VanEck…\n","protected":false},"author":2,"featured_media":20656,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-37165","post","type-post","status-publish","format-standard","has-post-thumbnail","category-crypto","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/37165","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=37165"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/37165\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/20656"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=37165"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=37165"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=37165"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}