Bitcoin and Altcoins To Rally Soon as Global Liquidity Increases, Expert Analyst Predicts

An expert analyst has expressed confidence in the cryptocurrency market, explaining the technical analysis behind the positive outlook.

An expert analyst has shared their positive outlook on the cryptocurrency market, providing a technical analysis to support their optimism. According to the latest analysis from Allincrypto, the host and analyst highlighted the influence of macroeconomic factors, specifically the interest rate cuts being implemented by central banks around the world (excluding Japan). These measures are designed to weaken currencies and bolster global liquidity.

The analysis suggests that Bitcoin's correlation with global liquidity could indicate a bullish trend. The analyst anticipates this trend to continue as central banks ease monetary policies, further strengthening the case for crypto as a high-performing risk asset.

Regarding the anticipated market movements, the analysis predicts a weakening U.S. dollar over the next few months, which has historically coincided with Bitcoin bull markets. As liquidity rises and the dollar weakens, cryptocurrencies, particularly Bitcoin, are expected to benefit. The analyst believes that Bitcoin is nearing the end of a pullback from March, and they also observe that altcoins are showing strong signs of growth as global liquidity continues to rise.

The analyst's perspective is that economic stagnation combined with monetary easing is creating an optimal environment for riskier assets like crypto to perform well. In terms of altcoins, the analyst anticipates them to rise alongside Bitcoin, with some potentially outperforming as Bitcoin's dominance decreases. The analysis suggests that the altcoin market is poised for strong growth once Bitcoin completes its breakout.

The analysis also touches on the future of finance, suggesting that cryptocurrencies and tokenized assets will play a significant role. For instance, BlackRock has been quietly supporting a new tokenized treasury fund.

However, Santiment's analysis indicates that Bitcoin may not reach a new all-time high in the immediate future. According to their findings, crypto market sentiment has reached its highest level in months, which might temper expectations for a new peak. Currently, there are 1.8 bullish posts about Bitcoin for every 1 bearish post. Historically, markets tend to move in a direction that counters the majority's expectations.

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