This Bull Market Can Get Even Crazier Than The Monster 2017 Rally

Bitcoin is just shy of 12-month highs, closing the week out over $10.5k would be solid confirmation. With Fed printing trillions, and setting more dovish tones, new stimulus coming soon, alt-season having just started, and more crypto companies getting listed on the NASDAQ, the market is bullish.

The largest cryptocurrency is back on the move today, trading above $11,150. However, the volume on spot exchanges have started to slide down. While earlier this week, more than $4 billion traded on top ten exchanges with real volume, now it has come down under $2 billion.

Bitcoin has hit a new 2020 high at $11,400 this week but has yet to make a new two year high for which the digital asset has to breach $13,900, 2019 high recorded in June. Trader Bob Loukas said,

“Bitcoin just shy of 12-month highs. Taken out 4 prior Daily Cycle highs. 85 weeks into a 210 week (4-year) Cycle. 50+200dma both trending higher. Closing the week out > $10.5k would be solid confirmation.”

Also, the digital asset is still far away from its all-time high of $20,000, hit in December 2017. Some industry participants expect the flagship cryptocurrency to reach this level before 2020 is over, if not sooner.

“This bull market can get crazier than the 2017 one,” believes trader Qiao Wang. Although he isn’t expecting the percentage increase to be as significant as the last one, “the nominal increase can easily be an order of magnitude bigger.”

It could be because of several reasons including trillions of helicopter money, millions of unemployed, easier access to leverage, DEXes enable instant listing, meme game stronker, ponzinomics stronker, and most importantly real shit getting built, he said.

In the crypto space, the market has been hearing much good news. This week, OCC gave national banks green light to store bitcoin and other cryptos for its clients.

In other news, newly launched derivatives platform EQUOS.io will be listed on Nasdaq to become the first US-based publicly-traded crypto exchange to be listed on the stock exchange.

Source: @ScottMelker

“Altseason just getting started, FED printing trillions, and more crypto companies are getting listed on the NASDAQ. Yea, I'm bullish,” said trader Crypto Dog.

The Dovish Fed

This week, the Federal Reserve took little action at its meeting but gave dovish signals to investors while highlighting its worries about the impact of COVID-19 on the US recovery. The Fed is hoping that Congress will renew its fiscal stimulus while stating its willingness to add monetary support.

“We’ve got to hope for the best and plan for the worst,” said Jay Powell, the chairman of the US central bank, after a two-day gathering of the FOMC. Tad Rivelle, CIO of fixed income for TCW said,

“The Fed is committed to keeping its foot on the gas. It has floored it and is still flooring it . . . and there is no indication they will back away from it.”

“They are scared.”

The primary concern of the central bank is the resurgence of coronavirus across many parts of the US and that the fate of the world’s largest economy depends upon the course of the virus.

Another worry is that Congress struggles to reach a deal renewing fiscal stimulus. “Fiscal policy is essential here,” Mr. Powell said, stressing that the first round of the $3 trillion stimulus had “really helped.”

The Fed may have held off any big adjustments to its monetary policies for now, as equity prices rebounded sharply from March lows while the US dollar weakens to a two-year low, but it could be coming soon and could set the stage for the next time it meets again in September.

“Everyone is centred on September,” said Tom Garretson, senior portfolio strategist at RBC Wealth Management. “If there aren’t more details . . . we could be opened up to a period where markets push back a bit.”

Powell said they moved very quickly and aggressively early as such now monitoring the situation but thinks their “policy is in a good place.”

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AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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