After a turbulent week in crypto and stock markets, Bitcoin reportedly rebounded on news of a funding agreement by the US government.
Reports of easing lockdown concerns and the possibility of a new economic stimulus package aimed at boosting liquidity have raised questions about whether Bitcoin can maintain its momentum or whether another decline is imminent.
Broadcast on “The Wolf Of All Streets” and hosted by Dave Weisberger (CoinRoutes CEO), James Lavish (CIO and Macro Strategist), and Mike McGlone (Bloomberg Senior Commodity Strategist), the show discussed macroeconomic factors impacting the market and the future of Bitcoin.
Experts attribute the recent market volatility to the easing threat of a U.S. government shutdown. James Rabish and Dave Weisberger predict that once the government reopens, the roughly $150 billion in liquidity in the Treasury General Account (TGA) will begin to flow back into the economy and support markets.
Mike McGlone maintained his long-standing cautious stance on Bitcoin, arguing that Bitcoin needs to close above $110,000 to show its strength. He also noted that traditional commodities such as gold are overextended and a correction could occur.
Meanwhile, Dave Weisberger and James Rabish argue that market sentiment indicators do not indicate a peak for Bitcoin. They cited Glock data and noted that social media and other indicators, including the Fear and Greed Index, were overwhelmingly “very bearish,” unusual for the peak of a bull market.
Weisberger also added that Bitcoin’s network power (hashrate) continues to grow steadily and strongly, making it the most important long-term indicator of ultimate demand for Bitcoin.
Experts say that Bitcoin is now in the “circulation stage” and that existing investors who have held Bitcoin since day one can now sell in large quantities without lowering the price due to increased liquidity. Weisberger believes that the assumption that Bitcoin supply will be “inelastic” with respect to the price in 2025 turns out to be incorrect, and that while there is selling pressure at current levels, this will subside before the next big price move.
*This is not investment advice.
