As crypto prices begin to recover from a prolonged period of consolidation and retracement in the second and third quarters of the year, the market is entering a phase of renewed optimism.
This shift has been particularly influenced by Donald Trump’s recent victory over Democrat Kamala Harris, which coincided with it Bitcoin (BTC) has been recording new record highs for five consecutive days since the election.
Major Bull Run for Crypto Ahead
Crypto analyst Miles Deutscher took to social media platform X (formerly Twitter) to outline the situation ten critical factors which he believes are paving the way for what could be the biggest bull run in the cryptocurrency market in years.
Deutscher emphasizes that Trump’s victory is a pivotal moment, ending what he calls the “operation choke point” that previously stifled the crypto sector’s growth through restrictive policies.
With a Republican victory in Congress, the analyst claims that the likelihood of tough regulatory action appears less likely, opening the door for clearer, pro-crypto measures. regulationswhich could further boost crypto prices in 2025.
Deutscher also points to several macroeconomic elements contributing to this bullish sentiment. He notes that the Federal Reserve (Fed) is expected to continue cutting interest rates until the first half of 2025.
Such monetary easing typically encourages investors to seek riskier assets, making cryptocurrencies an attractive option. In addition, international interest rate cuts are expected, which will further stimulate interest rates global liquidity and risky assets.
Analyst Anticipates Parabolic Growth for Bitcoin
The current liquidity dynamics in the crypto market also paints a positive picture. Deutscher points out that Bitcoin functions as a “liquidity sponge” that absorbs money capital flows to the market.
With demand for BTC reaching unprecedented levels and supply shrinking, the analyst says conditions appear ripe for a significant price increase.
The supply-demand dynamics for Bitcoin are particularly favorable right now. Demand is at record highs, as evidenced by the substantial inflows into the Bitcoin market exchange traded funds (ETFs).
Asset managers are also increasingly recommending exposure to digital assets to traditional financial clients, strengthening the asset’s appeal. On the supply side, Bitcoin balances on the exchanges have reached all-time lows, contributing to the scarcity that often causes price increases.
Additionally, this year’s Halving event in April, which slowed the pace of new Bitcoin issuance, further tightened supply.
As Deutscher concludes, the convergence of these factors points to an explosive upside for the cryptocurrency market. He states that the market has entered the third phase of the flow running of the bullshistorically characterized by parabolic growth.
Given the unique set of circumstances aligning simultaneously – political change, macroeconomic support, and favorable supply-demand conditions – the next six months could be transformative for the crypto landscape.
Featured image of DALL-E, chart from TradingView.com