Is The Bull Market In Trouble?
Today was CPI day, and we were anticipating an increase in inflation. However, the actual figure surpassed expectations, coming in at 3.7%. This likely confirms that we will witness at least one more interest rate hike in 2023, possibly another at the beginning of 2024. This practically means that the era of cheap money won't arrive as soon as the market had hoped, which was expected either by the end of 2023 or the beginning of 2024.
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For the crypto market, this could result in a peculiar mix of price fluctuations. In 2024, we are likely to see the approval of the first-ever spot Bitcoin ETF in the US, coinciding with the Bitcoin halving event scheduled for April. This event typically signals the start of a crypto bull market. However, the challenge lies in how new money can enter the crypto space when interest rates are high, making money more expensive.
So, despite the positive news and events like the halving and ETF approval, it's possible that these won't drive prices to the levels expected for a bull market. We might lose out on six months of elevated market sentiment, where everyone is excited about the halving and ETF but lacks the funds to invest. This could mean that we don't surpass the previous all-time high or that returns fall short of our expectations. This is a moderate speculation on my part.
The worst-case scenario is that we never even come close to reaching the old all-time high, and we might even miss the entire crypto bull run. This could potentially spell the end for 99.9% of cryptocurrencies, as without a bull run, there may be limited interest in building or accumulating assets in a bear market.
So guys Is The Bull Market In Trouble?
Posted Using LeoFinance Alpha
The rate at where the market isn't stable these days is alarming. For the last six months or there about. We have seen the price of btc dangling on the same spot from $24000 to $26000 back and forth. I will have to agree with you that it may be difficult to meet last high time if not possible. I notice something too, whenever btc surge, after, almost all other ALT coin follow. Maybe it is just a coincidence. But i have seen it clearly over time.
That happens because BTC give the direction for all alt coins . If btc is going up then the USD pairs of Alts will rise and the same when it goes down . Alts will skyrocket when BTC moves little and the dominance falls that is alt season
Thanks for the thoughtful insights. I appreciate it
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I see it quite the opposite way around and think this is actually good news for all of us accumulating. The money will come, but we need BTC to drop some more before that happens so expect more downside for the remainder of this year. ETF's will be massive and they have the funds to spark a massive bull run.
Yes it is good for accumulating but if there is no interest to buy because taking on risk is too expensive even the ETF won't spark the bull run
Yes I agree but I do think there is money that has been set aside for this already.
If there is no bullrun crypto loses all appeal for most. Crypto enthusiasts probably make up single digit % of the total user base. Others are gamblers, scammers, speculators, hype chasers, etc.
I dont think its going to happen. Crypto has a fairly small market cap in total. It shouldnt be too hard to move the needle in the right direction.
Yes it is true but with the unlimited money printer on we reached 3 Trillion total market cap. Maybe with need something to ignite the interest once again
I guess the bull market won't come anytime soon, which is a good or bad thing depending on how we want to look at it. Better to accumulate more while we wait for it.
Ohh, No!
Whether we like it or not the market will keep struggling and we need to get set for a very massive bull market, the market just needs a trigger and I suspect the pending ETF and Bitcoin event will be, the best we can ever do to ourselves is just staying strong and keep accumulating.
@tipu curate
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