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Expert Analyst Argues Bitcoin is on the Verge of a Significant Rally: Reveals the Conditions

BitcoinsistemiBitcoinsistemi2024/08/15 18:06
By:Mete Demiralp

Bitcoin, the world's largest cryptocurrency, could be on the verge of a major bull rally, according to an analyst. Here are his thoughts.

Jamie Coutts, chief crypto analyst at Realvision, has issued a bullish forecast for Bitcoin, suggesting that BTC is on the verge of a significant rally.

Coutts’ optimism stems from his observation that central banks around the world are easing monetary policy and injecting liquidity into the global economy. He cites a composite global liquidity momentum model that has recently signaled a shift to a bullish regime, similar to the conditions that preceded a 75% Bitcoin rally in late 2023 and early 2024.

In recent weeks, the central banks of Japan and China have provided significant liquidity, helping to expand the global monetary base by $1.2 trillion. Coutts believes this coordinated action, combined with a weaker U.S. dollar, indicates tacit approval from the U.S. Federal Reserve.

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Coutts predicts that based on historical patterns, Bitcoin could rise 2-3x from its current levels, requiring the US Dollar Index (DXY) to fall below 101 amid ongoing central bank interventions and the global M2 money supply to rise above $120 trillion.

Coutts argues that the current monetary expansion is a natural consequence of the credit-based fractional reserve system, arguing that the money supply must continually grow to support outstanding debts or the entire system risks collapse.

*This is not investment advice.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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