Bitcoin Expected to Remain Bearish as Market Liquidity Contracts
A popular crypto analyst, Nicholas Merten, predicts that Bitcoin will continue to experience a bearish trend for some time. Merten suggests that the Federal Reserve’s hawkishness and the resulting contraction of market liquidity will outweigh any bullish narratives in the crypto space.
Merten acknowledges that various narratives, such as the introduction of an exchange-traded fund (ETF) or de-dollarization, have not propelled Bitcoin to new all-time highs as some had expected. However, he clarifies that this bearish outlook does not mean an immediate collapse or a decline in Bitcoin’s price to $15,714. Instead, it signifies a steady downward grind and a correction in market expectations.
Merten believes that Bitcoin, altcoins, and equities are all poised for a market correction due to challenging macroeconomic conditions. He warns of potential pain in the economy caused by underlying macro uncertainties.
Bitcoin Trading at $27,179
At the time of writing, Bitcoin is trading at $27,179, experiencing a 0.5% decrease in the last 24 hours.
Hot Take: Brace Yourself for a Challenging Period
The widely followed crypto analyst Nicholas Merten warns that Bitcoin is currently experiencing the calm before the storm. Despite various bullish narratives failing to boost the cryptocurrency’s price, Merten expects a long and steady grind downwards. This correction will lead to blown-out expectations and potential liquidations for many investors.
Merten attributes this bearish trend to contracting market liquidity caused by the Federal Reserve’s hawkishness. As equities and altcoins also face challenging macroeconomic conditions, he predicts pain in the broader asset markets and urges investors to brace themselves for a difficult period ahead.
By
By
By
By
By