A widely followed crypto analyst is predicting Bitcoin (BTC) is nearing a massive breakout.
Crypto trader Michaël van de Poppe tells his 724,100 followers on the social media platform X that BTC could soon soar if the Fed starts its rate-cutting process later this month.
The analyst suggests that the rate cutting would inject more liquidity into the market, which could give risk assets like Bitcoin a boost.
He also believes investors will pour into the flagship digital asset as a safe haven against US economic uncertainty and currency debasement.
“Bitcoin is going to surge significantly from the rate cut policy and the likelihood of QE (quantitative easing). The worse the economic data, the heavier the impact will be on Bitcoin’s interest, as Bitcoin is going to serve as the safe haven that Gold was in the 1930s – not as a hedge against inflation but as a hedge against the uncertainty of a failure of the U.S.”
The analyst predicts that the next crypto market breakout will not be dominated by memecoins.
“I suspect we’re on the edge of a potential massive breakout of the markets after either the unemployment data or the rate cuts from the FED later this month. I also believe that we’re going to see an all-around crypto cycle where RWA (real-world assets), dePIN (decentralized physical infrastructure network) and DeFi (decentralized finance) are going to be the backbones of the actual adoption cycle. Not memecoins.”
The analyst also believes that Bitcoin will be the top-performing asset moving forward in the economic cycle until reaching its market cycle peak. He predicts Bitcoin will form a blow-off top, which in technical analysis is a chart pattern showing a sudden rise in price that is followed by a sharp decline.
“Unemployment data is still coming up, and non-farm employment changes as well, but the signs are getting worse. The US Dollar is losing momentum against other currencies, as the Canadian Dollar is showing a lot of strength alongside the Japanese Yen and the Euro. This is exactly why Bitcoin is so important to have in your portfolio. It follows the pattern of gold of the 1930s, and it will likely be the blow-off top of this cycle. I think that the next peak of Bitcoin is going to be the peak of the entire equity markets (or perhaps they are already peaking while Bitcoin runs up; who knows?).”
Bitcoin is trading for $53,828 at time of writing, down 4.4% in the last 24 hours.
Generated Image: Midjourney
