Popular Analyst DataDash Skeptical of Bitcoin’s Near-Term Prospects
Popular cryptocurrency analyst Nicholas Merton, also known as DataDash on YouTube, remains skeptical about Bitcoin’s near-term prospects despite the optimism surrounding the upcoming halving and potential approval of a Bitcoin ETF. In a recent YouTube video, Merton outlined three key reasons why he believes Bitcoin is unlikely to initiate a new bull market in the near future.
The Impact of an SEC-Approved Bitcoin ETF
Merton challenges the widely held belief that an SEC-approved Bitcoin ETF would generate significant new demand. He points out that the continued discount on the Grayscale Bitcoin Trust (GBTC) indicates that institutional demand might remain low even with the availability of an ETF.
The Waning Influence of Bitcoin’s Halving Events
Merton suggests that the upcoming halving will have a relatively insignificant impact on Bitcoin’s market cap compared to previous halvings. He argues that the reduction in new supply resulting from the halving will not be enough to drive significant price increases.
The Current Macro Environment
Merton mentions factors such as rising interest rates, a stronger dollar, and a potential recession that make risky assets like Bitcoin less attractive. He believes that the Federal Reserve will not resort to aggressive quantitative easing measures as they did in past recessions, limiting any substantial upside for Bitcoin.
A Rangebound Bitcoin without New All-Time Highs
In conclusion, Merton predicts that Bitcoin will remain rangebound and will not reach new all-time highs in the next year unless there is a major shift in market dynamics. He advises investors to exercise patience and wait for clearer signs of a bottom before making significant crypto investments.
Hot Take: Merton Urges Caution and Patience for Bitcoin Investors
Despite the optimism surrounding Bitcoin’s future, DataDash’s Nicholas Merton advises caution and patience. He believes that an SEC-approved Bitcoin ETF may not generate the expected demand, and the impact of Bitcoin’s upcoming halving events is diminishing. Additionally, factors like rising interest rates, a stronger dollar, and a potential recession make Bitcoin less appealing. Merton predicts that Bitcoin will remain rangebound without reaching new all-time highs in the near future. He advises investors to wait for clearer signs of a bottom before making significant crypto investments.
By
By
By
By