finbold.com
Bitcoin (BTC) might have reached new all-time highs in 2024, but the pioneering cryptocurrency has seen a period of sideways trading since March, struggling to decisively breach the psychologically important barrier of $70,000, and at times dropping to as low as $54,000.
As it stands, the long-awaited month of ‘Uptober’, which was supposed to ignite a renewed bull run, is unlikely to materialize.
At press time, BTC is trading at $68,930 — having rallied by 5.16% over the course of the last thirty days.
However, even analysts who concede that ‘Uptober’ has been a disappointment, such as Michaël van de Poppe, point to key catalysts that could see Bitcoin enter into another prolonged upswing.
van de Poppe reflects on market sentiment and external factors
The renowned crypto researcher sees overall market sentiment as being hesitant — noting that BTC is currently in the midst of an accumulation phase and that the cryptocurrency lacks the momentum of a traditional bull run.
The question is, as you can see in the title, are we already in the bull market for Bitcoin? And you could say the Bitcoin bull cycle has two stages… we’ve seen a rally towards a new all-time high due to the liquidity that has been added by the ETF, but it’s not like the vertical move that we’re all looking for.
Still, although he has adjusted his views and no longer believes that October will see a broader crypto rally, van de Poppe remains bullish and urged investors and traders to hold their positions in a YouTube video released on October 27.
The crypto expert noted that, despite recent cuts, interest rates remain high — diverting liquidity from high-risk assets like crypto into government bonds such as U.S. Treasuries, which are currently seeing soaring yields. He highlighted the strength of the U.S. dollar as another factor driving away liquidity.
Perhaps most interestingly, van de Poppe pointed out that, while we are seeing new all-time highs, this is only nominal — as once inflation is factored in, BTC is actually not reaching record prices.
Analyst sees bullish catalysts for BTC in the making
On the bullish side of the aisle, the crypto influencer noted that a key measure of money supply, M2, which has correlated strongly with BTC’s price action in previous cycles, is on the rise.
van de Poppe suggested that if M2 continues to expand, it could inject more liquidity into markets, potentially benefiting risk assets like Bitcoin as investors seek alternatives to the dollar in an inflationary environment.
As long as the M2 supply increases, bitcoin’s price is going to follow… so it’s just a matter of time until bitcoin price is going to pick up momentum.
In tandem with this, he drew attention to upcoming macroeconomic events as potential bullish catalysts — focusing on the Federal Reserve’s rate policy, the longstanding attempt by BRICS countries to present a currency alternative to the U.S. dollar, a potential Trump presidency, and increased BTC exchange-traded fund (ETF) inflows.
Notably, the veteran researcher also expects altcoins and Ethereum (ETH) to outperform BTC in the long run, provided that ETH stabilizes — reflecting his latest portfolio holdings.