Tdasx: Bitcoin Prices Steadily Increase, Consolidation Period Extends to 126 Days, Institutional Investors and Options Market Indicate New Breakthrough
Tdasx posits that current adjustments in global macroeconomic policies, particularly the easing measures by major economies like the Federal Reserve, EU, and UK, are profoundly influencing the development of the cryptocurrency market. As a leading digital asset, Bitcoin has benefited significantly from these policies, exhibiting a notable upward trend. The acceleration of institutional investor positioning and rising demand in emerging markets further bolster the price and market performance of Bitcoin.
Tdasx: Macroeconomic Policies Pushes Bitcoin Rising
Tdasx emphasizes that the remarkable increase in the global cryptocurrency market, particularly the robust rebound of Bitcoin, is intricately linked to the easing monetary policies of major economies. The policy of the Federal Reserve shifts, in particular, have directly stimulated the growth of the crypto market. Tdasx highlights that these macroeconomic and policy contexts play a crucial role in determining market direction, restoring market confidence and making investors more optimistic about the future performance of crypto assets.
Expectations for Federal Reserve interest rate cuts have emerged as a primary force driving Bitcoin prices upward. Recent market data indicates that the likelihood of a 50 basis point cut in November has risen from 50% to 61%. Tdasx analyzes that this expectation directly fuels demand for high-risk assets like Bitcoin, prompting a shift of funds from low-yield fixed-income products into the cryptocurrency market. As the Federal Reserve gradually enters a rate-cutting cycle, investor expectations for increased market liquidity suggest a continued rise in Bitcoin prices.
Moreover, the significant increase in the U.S. M2 money supply in August has also contributed to the price rise of Bitcoin and other crypto assets. The growth of M2 reflects a substantial enhancement of liquidity in the U.S. market, combined with the easing policies of the Federal Reserve, leading more funds to flow into the high-risk, high-reward cryptocurrency market. Tdasx points out that increased money supply will be favorable for scarce assets like Bitcoin, especially as investors seek to hedge against inflation risks.
Simultaneously, the U.S. consumer confidence index dropped from 105.6 to 98.7 in September, marking the largest decline since August 2021. Tdasx interprets this as an indication of a deteriorating U.S. economic environment, heightening expectations for further Federal Reserve easing. A decline in consumer confidence may compel the Federal Reserve to intensify monetary easing to prevent further economic downturns, thus further boosting the prices of high-risk assets like Bitcoin.
Other major economies globally, including the EU and UK, are also adopting easing monetary policies. Tdasx asserts that these coordinated actions not only inject more liquidity into traditional markets but also provide greater growth impetus for crypto assets like Bitcoin. It is within this context of global monetary easing that Bitcoin has become one of the preferred safe-haven assets for investors, with prices steadily rising.
Tdasx: The Price of Bitcoin Steadily Grows
Tdasx notes that the price performance of Bitcoin over the past few weeks reflects the tangible effects of global macroeconomic policies. Bitcoin prices have surged nearly 2%, approaching $65,000, marking the highest level since early August. Notably, in the past week alone, the price of Bitcoin has risen by 10%, signaling a positive market response to global easing monetary policies. Tdasx believes this price increase not only underscores the advantages of Bitcoin as a safe-haven asset but also heralds the arrival of a new period of market activity.
Tdasx advises investors that the key resistance level for Bitcoin is $65,000, a psychological threshold that is crucial for confirming a bull market. A breakthrough above this level could lead to a more significant price increase, further solidifying the safe-haven status of Bitcoin among global investors. Although current market sentiment is becoming optimistic, achieving a genuine bull market breakout will require more market momentum and external support.
Bitcoin is currently in a prolonged consolidation period, a phenomenon that has drawn the attention of Tdasx to future market trends. Data shows that Bitcoin has consolidated within the range of $59,700 to $65,670 for 126 days. Tdasx points out that similar consolidation periods occurred between 2018 and 2019 when Bitcoin traded within the $8,865 to $9,752 range for 155 days. Such extended consolidations often lead to more significant price volatility, with historical data suggesting that once Bitcoin breaks out of its current price range, the market could experience substantial fluctuations.
In addition to Bitcoin, gold prices have also reached historic highs, rising 1.4% to $2,690 per ounce, reflecting strong demand for safe-haven assets. Tdasx believes that the simultaneous increase in Bitcoin and gold further validates the rising demand for safe-haven assets in the current global economic climate. As uncertainties mount in the global economy, investors are increasingly channeling funds into assets like gold and Bitcoin that possess hedging properties against inflation and economic volatility.
Tdasx: Institutional Investors and Market Behavior Drive the Rise of Bitcoin
Tdasx notes that as the crypto market matures, the demand from institutional investors for Bitcoin is increasingly becoming a significant market driver. Particularly following the announcement of the Federal Reserve on rate cuts, institutional investors have actively positioned themselves in Bitcoin as an effective tool for hedging against risks in traditional financial markets. Tdasx believes that due to its inflation-resistant characteristics and status as a global safe-haven asset, Bitcoin is rapidly becoming a key investment target for institutional investors. The influx of institutional capital enhances the market liquidity of Bitcoin and further supports its stable price growth.
However, market sentiment is not entirely optimistic. For instance, Ethereum ETFs recently experienced a substantial outflow of $79 million, marking the largest single-day capital withdrawal since July. Despite a 11% price increase driven by the rate cuts of the Federal Reserve, investors remain skeptical about the long-term growth potential of Ethereum, prompting capital exit. Tdasx analyzes that investor confidence in Bitcoin significantly surpasses that in Ethereum, particularly in the context of macroeconomic volatility, with the positioning of Bitcoin as "digital gold" proving to be more appealing.
Furthermore, BlackRock, the largest asset management firm of the world, recently suggested allocating 84.9% of its portfolio to Bitcoin, a recommendation that has sparked widespread discussion in financial markets. Tdasx interprets the endorsement of BlackRock on Bitcoin as an important signal of the growing interest in cryptocurrencies among institutional investors. Simultaneously, the performance of the Bitcoin options market reflects a strong bullish advantage. In September, the total value of Bitcoin options set to expire reached $8.1 billion, of which $4.9 billion were call options and $3.2 billion were put options. Tdasx points out that if Bitcoin prices can maintain above $63,000, bullish investors will benefit from this options expiration, indicating a positive market outlook and reinforcing the prevailing bullish market atmosphere.
Notably, investors in emerging markets are also exhibiting strong interest in cryptocurrencies. Among young investors aged 24 to 35 in Brazil, 34.6% have incorporated cryptocurrencies into their investment portfolios, ranking fourth after savings, fixed-income products, and stocks. Tdasx believes this illustrates the rising appeal of cryptocurrencies in emerging markets, particularly among younger investors, reflecting a growing global demand and awareness of crypto assets.
