Analysts optimistic as liquidity ticks and Bitcoin ‘forced selling’ is over
Bitcoin will move closer to all-time highs after the United States election and a shift to a “pro-liquidity environment,” according to analysts.
“With all this forced selling behind us, this is a typical seasonal pattern where Bitcoin tends to struggle between one to three months after the halving, which was in April,” VanEck head of digital assets research Matthew Sigel argued in an Aug. 19 interview with CNBC.
In July, the German government sold 49,858 Bitcoin ( BTC ) for $2.6 billion. Meanwhile, approximately 70% of creditors of the bankrupt crypto exchange Mt. Gox have been repaid , with data showing many have held onto their Bitcoin.
Recent spike in global liquidity
It comes as several analysts noticed that global liquidity is starting to surge.
“Global Liquidity has started to increase, a pattern is forming,” BitVaulty CEO Francesco Madonna wrote in an Aug. 17 X post .
Francesco Madonna points out that Bitcoin will follow Gold’s recent move surpassing its all-time high. Source: Francesco Madonna
“Global liquidity is finally ticking up, will we see the greatest bull run ever in 2025?,” pseudonymous crypto trader Kook added .
At the time of publication, Bitcoin is trading at $60,431, according to CoinMarketCap data .
Investment strategist Lyn Alden is “not particularly surprised” at Bitcoin’s lack of price action, explaining in an Aug. 19 episode of Natalie Brunell’s Coin Stories podcast that “global liquidity has been flat for two years.”
“The fact that Bitcoin is chopping around does make a lot of sense,” Alden stated.
Alden believes that in 2025 when the market turns to a more “pro-liquidity environment,” Bitcoin can surpass its current all-time high of $73,679.
Related: Bitcoin buyers wait below $58K as Japan wipes out record stocks crash
Meanwhile, Sigel claims that the November United States presidential election will be a pivotal moment for Bitcoin’s price.
He argues that, regardless of the election result, macroeconomic conditions will stay the same for the next few years.
He says that the market must “come to grips that whatever candidate wins, we’re in for four more years of reckless fiscal policy.”
“The history is that Bitcoin really hits its stride at that point,” Sigel stated before claiming that “we’re buyers here, we really think it can recover.”
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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