Crypto Market Primed for Bull Run? Here’s What to Expect
• Crypto analyst Nicholas Merten of the YouTube channel DataDash recently shared his thoughts on the current state of Bitcoin and the crypto market.
• He emphasized the importance of analyzing momentum indicators to understand the market’s short-term direction.
• He stated that an increase in stablecoin liquidity is essential for on-ramps of new liquidity from hedge funds, family funds, and high-net-worth individuals.
Crypto Market Primed For Bull Run?
Popular crypto analyst Nicholas Merten of the YouTube channel DataDash recently shared his thoughts on the current state of Bitcoin and the crypto market. He emphasized the importance of analyzing momentum indicators to understand the market’s short-term direction. Despite this, he expressed concern about stagnation in trend, as bitcoin has not made new highs for nearly a month and its price is at its lowest since March 17.
Current State Of The Market
The weekly timeframe still shows bulls in control since January’s breakout, leading to questions about whether the market is ready for another bull run. Numerous narratives have been applied to explain this potential bull run, such as central bank balance sheet expansion or bank runs; however none of these have held true so far.
Liquidity Is Key For New Bull Markets
Nicholas mentioned that an increase in stablecoin liquidity is essential for on-ramps of new liquidity from hedge funds, family funds, and high-net-worth individuals. The current state of the market shows a contraction in stablecoin liquidity and global liquidity which raises doubt about potential for a new bull market.
Challenges Faced By Crypto Industry
The crypto industry faces numerous challenges such as setbacks caused by FTX, Celsius, and other exchanges; furthermore loss of institutional backbones like Genesis, Silver Gate, and Signature Bank has hindered on-ramps and off-ramps for large scale crypto companies resulting in stagnation in dollar liquidity within space.
Conclusion
Overall Nicholas believes that there are many obstacles preventing a potential bull run at this point due to lack of new entries into space combined with contraction in stablecoin liquidity affecting overall global liquidity; however if these issues can be resolved then we may see a renewed bullish trend soon enough!
