Bitcoin’s price action is under intense scrutiny as analysts present diverging viewpoints on its future trajectory amidst market volatility. While some experts forecast a bearish trend, others highlight opportunities that could drive Bitcoin to new highs in the coming months.
👉 Why Bitcoin's correlation to money supply matters
Diverging Forecasts: Bearish Views vs. Potential Upswings
Current analysis from industry leaders reveals a complex picture for Bitcoin (BTC). According to CryptoQuant’s Ki Young Ju:
- Bearish signals dominate: All key indicators suggest a downturn.
- Extended bearish/sideways phase: Ju predicts 6–12 months of stagnant or declining prices.
- Liquidity concerns: New whales selling at lower prices exacerbate market uncertainty.
Market Indicators: Liquidity and On-Chain Analysis
Ju notes that fresh liquidity is drying up, potentially prolonging price stagnation. Bitcoin’s funding rates near zero reflect trader indecisiveness. However, not all analysts agree:
- Swyftx’s Pav Hundal: Global economic improvements could reignite interest in risk assets.
- Crypto analyst Seth: Rising global M2 money supply could support Bitcoin’s upward momentum.
👉 How liquidity impacts Bitcoin’s price
Catalysts for a Bitcoin Rally
Economic Factors
- M2 money supply at ATHs: Historically correlates with Bitcoin surges.
- CoinRoutes CEO Dave Weisberger: "Bitcoin could hit a new ATH within a month if M2 correlation holds."
Historical Benchmarks
- Alan Knitowski (ex-CEO): Bitcoin’s "fair value" should be ~$250K based on cycle trends.
Conclusion
Bitcoin’s near-term future remains hotly debated:
- Bear case: Prolonged stagnation from low liquidity.
- Bull case: Potential rally tied to macroeconomic shifts.
Investors should monitor both technical and fundamental signals to navigate this volatile phase.
FAQ
Q: How long could a Bitcoin bear market last?
A: Analysts like Ki Young Ju suggest 6–12 months of sideways or bearish action.
Q: What could trigger a Bitcoin price surge?
A: Increased liquidity (M2 supply) and positive macroeconomic trends are key catalysts.
Q: Is Bitcoin undervalued right now?
A: Some, like Alan Knitowski, argue Bitcoin’s "fair value" is ~$250K—far above current levels.