The creators of one of the leading analytics firms in the chain say the odds are stacked for a significant upside to Bitcoin (BTC) faster than traders think.
In Glassnode’s latest newsletter, Jan Happel and Yann Allemann say that although the price action looks bleak at the moment, an unexpected change in Fed policy could be a threatening bullish catalyst for BTC.
“In a volatile environment where bad news is perceived as good news, Bitcoin has been compressed between $ 19.00- $ 21,000 while Swissblocks Bitcoin Risk Signal reflected a mitigating risk. Despite a weak price development in June, it is an imminent pronounced move.
The market is indecisive as investors digest incoming data, eagerly await the FOMC meeting and anticipate the Fed’s policy. Will the Fed continue with an aggressive rate hike in July and September? Or has the economy (aggregate demand) shown enough weakness to persuade the Fed to change course of action? ”
Glassnode founders also have their radars locked on the Stablecoin Supply Ratio (SSR), which is the total market value of BTC divided by the total market value of all known stablecoins in circulation.
According to Glassnode, a low SSR indicates that the current stablecoin has more purchasing power to buy BTC.
Happel and Allemman say that the current state of the SSR indicator leans towards Bitcoin being significantly oversold.
“Bitcoin holds $ 20,000 level. Increase in stablecoin market share indicated an oversold BTC on a daily time frame
Significant liquidity sits on the sidelines. It is a question of when (FOMC) and not whether capital is relocated. “
At the time of writing, Bitcoin is down over 68% from record highs, and is currently changing hands for $ 21,498.
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