Bitcoin Price Set To Rally As Macro Backdrop Is Perfect, Here’s Why
16 März 2023 - 12:30PM
NEWSBTC
As the banking crisis has spread from the United States to Europe,
Bitcoin may find the perfect macro environment for a major price
rally. In a tweet, notorious trader Andrew Kang wrote that the
macro backdrop has never been more perfect. Kang cites the Fed’s
need to reduce its aggressiveness in raising interest rates in
light of the economic slowdown and turmoil in the global financial
system. In addition, stocks are not attractive given declining
sales and high price-to-earnings ratios. On top of that, according
to Kang, bonds offer a mediocre yield and R/R profile. The US
dollar, euro and other fiat currencies are likely to become
increasingly devalued. “An amazing set-up to compel flows from
TradFi investors,” Kang claims. $2 Trillion In Liquidity And Credit
Suisse The trader’s tweet comes amid news that J.P. Morgan expects
the Federal Reserve’s (Feds) emergency lending program to provide
$2 trillion in liquidity. This will reverse the Fed’s monetary
tightening policy, according to strategists at the major bank led
by Nikolaos Panigirtzoglou. A client note on Wednesday obtained by
Bloomberg said that while it’s unlikely the largest banks would
take up the program, the maximum utilization of the facility is
nearly $2 trillion, equal to the nominal value of bonds held by US
banks outside the five largest banks. Related Reading: Bitcoin
Price Reaches Inflection Zone As The Bears Slowly Take Control In
Europe, the Swiss National Bank and the Financial Market
Supervisory Authority (FINMA) have published a statement on market
uncertainty and declared that the troubled Credit Suisse meets the
capital and liquidity requirements imposed on systemically
important banks. If necessary, the Swiss National Bank will provide
Credit Suisse with liquidity. Credit Suisse shares rose more than
40% at the start of the trading session after the bank announced it
would borrow up to $54 billion from the Swiss National Bank.
Bitcoin Price About To Rally? According to analyst “52kskew”, the
recent setback in financial markets, despite an upcoming Fed pivot,
may have happened due to uncertainty. “Something is not quite right
with markets today, […] shift in market tone is very apparent in
terms of macro / traditional markets,” the analyst explained,
adding: Looking more like rush to get out & higher volatility
which boosts cash reserves more than market exposure for obvious
reasons. Time horizon varies with this kind of positioning change
to actual market impact; however, it’s always ahead of central bank
pivots & global issues. That a strong Bitcoin rise could be
imminent is also indicated by the Binance spot order book. This
shows a conspicuous abundance in the $22,500 to $24,000 range.
Possibly this could be Binance’s liquidated Industry Fund being
used to buy in this range? Related Reading: Why Bitcoin Could
Explode To $40,000 Per Coin In A Flash Even if the heatmap does not
mean that all orders are really filled, the situation remains to be
observed. However, the analyst also warned, “Movements [are]
becoming more clear here as buy orders are being placed under price
to push prices higher. Often this attracts perp buyers to fill spot
sell orders above,” and shared the chart below. As analyst Michaël
van de Poppe explained, today is a big day for the market, as the
US unemployment figures will be released. Traders should keep an
eye on that. “Last week we’ve seen the largest jump since October,
would be wondering whether we’ll be seeing continuation of that
rise, which might mean we’ll have higher unemployment numbers,” van
der Poppe stated. At press time, Bitcoin was trading at $24,937,
trying again to break through key resistance at $25,200. Featured
image from iStock, chart from TradingView.com
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