Analyst Marcel Pechman highlights several factors that are driving Bitcoin towards a price of $22,000 in the latest episode of Cointelegraph's The Market Report. Investor sentiment has taken a hit following Grayscale Investment's delayed spot Bitcoin exchange-traded fund applications and its legal victory against the SEC. Additionally, several lawsuits from the SEC against Binance and Coinbase, along with potential money laundering charges, have added to the bearish sentiment. Furthermore, with U.S. inflation down to 3.2% and the Federal Reserve tightening market liquidity, Bitcoin's upward trajectory seems inevitable.
Turning points and indicators
BitMEX founder, Arthur Hayes, believes Bitcoin's bull market began in March, citing the Silicon Valley Bank fallout and the subsequent intervention by the U.S. Treasury Department as key turning points. Pechman agrees with Hayes but raises concerns about the U.S. Dollar Index, which has remained at the same level for the past six months. This stability has led investors to believe that global economic recessions would likely impact other countries before the United States, solidifying the U.S. dollar's status as a safe haven.
Implications for the Federal Reserve
Pechman argues that the Federal Reserve is more focused on salvaging the banks than preventing potential economic turmoil. Despite the risks, U.S. Treasurys and the U.S. dollar are still seen as the safest options. This attitude towards risk may further accelerate Bitcoin's climb to $22,000.
To get more insights on the market outlook and to stay up-to-date with the latest content, listen to the full episode of The Market Report on Cointelegraph Markets & Research YouTube channel. Don't forget to hit the "Like" and "Subscribe" buttons!
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