Markets
Cryptocurrency Analyst Lists 10 Reasons To Invest Now
In a new send On X, Miles Deutscher, a well-known cryptocurrency analyst with over half a million followers, proclaimed the current market condition as “one of the most bullish setups” he has ever seen in his six-year career in the cryptocurrency industry. Deutscher outlined ten fundamental catalysts that he believes are poised to push cryptocurrency markets higher in the near term.
“There has been a lot of talk recently about headwinds (Germans selling, Gox, macro, etc.). But the reality is that there is a LOT to look forward to,” Deutscher stressed.
10 Reasons to Be Ultra Bullish on Cryptocurrencies
#1 German Government BTC Sales: Deutscher notes that the German government has exhausted its BTC holdings to sell, which removes significant selling pressure from the market. “The great thing about the overhang is that once the sell is priced into the market, there is a floor to the downside and room for the price to rise. We still have Gox, but there is light at the end of the tunnel now,” he explained.
#2 Bitcoin ETF Inflows: According to Deutscher, the strong inflows into Bitcoin ETFs are underestimated. In the past month, these ETFs saw inflows exceeding $1 billion, demonstrating continued investor interest.
“I think a lot of people are underestimating the long-term impact of BTC ETFs. It provides a strong passive offering to the market and the appetite for ETFs is not going away (we had +$1 billion last month),” Deutscher added.
#3 US Presidential Election: The cryptocurrency analyst highlighted betting markets like Polymarket, where Trump is favored to win. A Trump presidency is seen as a positive catalyst for cryptocurrencies, given his administration’s perceived support for the sector.
#4 Trump’s Defense at BTC 2024 Conference: Deutscher also highlighted Trump’s planned appearance at the BTC 2024 conference, where he is expected to endorse Bitcoin and cryptocurrencies more broadly. Trump is rumored to make another major announcement. Bitcoin Magazine CEO David Bailey has floated the idea of making BTC a strategic reserve asset for the United States.
#5 FTX Refunds: FTX’s $16 billion repayment to creditors is a less talked about move but crucial factor“Many of these recipients will likely re-enter the market, leading to new supply,” Deutscher predicts, suggesting a potential surge in buying activity in cryptocurrency markets.
#6 Global Liquidity Cycle: Deutscher also mentioned the correlation between global liquidity and cryptocurrency prices. “It’s crazy how correlated cryptocurrencies (especially BTC) are to global liquidity. Interestingly, we’ve been tracking a 65-month cycle closely. This would suggest a peak in late 2025,” Deutscher predicted.
#7 Spot ETH ETFs: THE launch imminent of Spot ETH ETFs is another major catalyst. This is the first time an altcoin has received such an investment vehicle, potentially significantly expanding Ethereum’s market exposure and investor base.
#8 Goldman Sachs Tokenization Projects: Goldman Sachs’ involvement in three tokenization projects lends significant credibility to the cryptocurrency space. This institutional backing is expected to benefit a wide range of altcoins and related real-world asset (RWA) applications.
#9 Expected rate cuts: According to the CME FedWatch tool, the market is currently pricing in the likelihood of three rate cuts by the end of the year, with a 90% chance of a 25 basis point cut in September. This could be a huge tailwind.
#10 Forward-Looking Markets: Finally, Deutscher highlighted the reflexive nature of crypto markets, where positive sentiment itself can trigger substantial rallies. “You are likely to see the market priced in these tailwinds over the coming months. Since cryptocurrencies are highly reflexive, a positive supply on the back of increased sentiment can, in itself, lead to a significant rally,” Deutscher concluded.
At press time, BTC was trading at $65,648.
Featured image created with DALL·E, chart from TradingView.com