- Market expert Mike Alfred insists it is insane for analysts to speculate on lower Bitcoin prices at this time, given favorable economic metrics.
- Alfred cites factors like surging U.S. Treasury yields, breakout in global monetary base (M2), and growing sentiments around a Fed rate cut as indicators that Bitcoin’s price will surge.
- Despite the recent market downturn, traders bought the Bitcoin dip, with data showing weighted sentiments flipped super bullish when Bitcoin dipped to a 3-month low of $58,900.
Recent volatility in the crypto markets has analysts debating where Bitcoin prices are headed next. While some see further declines ahead, expert Mike Alfred argues such speculation is misguided given current economic conditions.
The Recent Bitcoin Sell-Off
Bitcoin dropped below $59,000 last Thursday amidst broader market declines. The selling was triggered by higher-than-expected US inflation data, which raised concerns of more aggressive Fed policy tightening. This outlook contrasted with hopes for a November rate cut. With the conflicting narratives, some analysts called for Bitcoin to test lower support levels near $57,500 or even below $50,000.
Favorable Metrics Suggest Strength Ahead
According to Mike Alfred, CEO of Digital Assets Data, betting on lower Bitcoin prices is “insane” based on key market metrics. He cites data showing yields and inflation ticking higher in ways that tend to precede interest rate cuts.
For example, 10-year Treasury yields spiked nearly 4% after the latest inflation data, typically foreshadowing a rate slash. Meanwhile, global M2 money supply recently surged above $108 trillion, a level that has coincided with past Bitcoin rallies.
Sentiment Shifts Toward Rate Cut
Despite hawkish Fed rhetoric, market expectations appear to be shifting back toward a November rate cut. Lower rates often boost risk appetite and benefit assets like Bitcoin.
Supporting this view, Santiment data reveals traders bought aggressively into the recent dip, anticipating a surge if rates fall. Some firms like Standard Chartered even recommended buying under $60,000 based on a bullish long-term outlook.
After rebounding from Thursday’s lows near $58,900, Bitcoin trades around $60,860 at the time of writing. With key metrics signaling strength, predictions of further declines seem unlikely according to Alfred.
