Despite the doom and gloom of many crypto analysts, Rekt Fencer, a crypto expert, believes the market is on the verge of something huge. In his latest thread on X, he explains why patience and a long-term view could be key for investors.
BTC Post-Halving Analysis: A Natural Phase
Many see Bitcoin’s post-halving consolidation as a normal phase. With a 13% decline from highs and 15 weeks of consolidation, this period of low volatility is typical after significant price moves.
Rekt Fencer argues that this phase, though frustrating, is essential and mirrors past cycles in 2017 and 2021. Historically, the accumulation stage lasted 4-5 months before a parabolic move.
Indicators Pointing to Future Growth for the Crypto Market
Rekt Fencer highlights several key indicators:
- Fed Reserve Balance Sheet: The Federal Reserve’s total assets chart is bottoming out, suggesting future liquidity injections, which will benefit crypto.
- Stablecoin Index: Currently, liquidity is lower than in previous cycles, indicating potential for growth as new capital enters the market.
- VC Funding: With investments currently 3-4 times lower than 2021 peaks, there is room for significant funding increases during the next bull run.
- Global Net Liquidity Index: Major Central Banks’ assets and FED reserves are consolidating, signalling a possible future increase in liquidity.
Political and Regulatory Catalysts for Crypto’s Future Growth
Rekt Fencer points to upcoming political events and regulatory changes as bullish drives:
- US Election 2024: Crypto has become a political issue, with Trump promising to support the industry.
- Rate Cuts: Countries like Canada and Switzerland have already cut rates, and the US might follow.
Altcoin Season Predictions
For altcoin holders, Rekt Fencer advises against selling now. He notes that BTC dominance has been stable, but a decline could signal the start of altseason.
The launch of an ETH ETF, possibly as early as July, and the upcoming SOL ETF could further clarify altcoin trends.
Rekt Fencer remains bullish despite the current market sentiment. He suggests that staying patient and holding investments could be highly rewarding as the market moves through its natural cycle and prepares for significant growth opportunities.
Despite many proclaiming the end of the bull run, the combination of indicators, upcoming political events and potential regulatory changes make a compelling case for continued investment in Bitcoin and Altcoins.
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