Bitcoin's Price Could Suffer Due to Global Monetary Policy Changes, Says Crypto Market Analyst

A Different Cycle?

According to Jamie Coutts, a crypto market analyst at Bloomberg Intelligence, the price action of Bitcoin pre- and post-halving could be different this time around due to changes in global monetary policy. Coutts believes that while there are strong fundamentals in the crypto space, liquidity is the main driver of risk assets. If the tightening cycle continues and there is an increase in unemployment and stress in the banking sector, Bitcoin and other risk assets could face more challenges.

Near the End?

Despite the negative macroeconomic outlook, Coutts suggests that the end could be near. He acknowledges that there is still underlying stress in the US banking system and other areas of the economy, but he believes that the current Bitcoin cycle is somewhat different. However, he reminds people that the current monetary system is based on fiat and credit-money, and eventually, some form of easing will be necessary. In this context, Bitcoin and other crypto assets, with control over their inflation schedules, could perform well when the economy starts to recover.

To hear more about Coutt’s views on Bitcoin, Ethereum, altcoins, and stablecoins, check out the full episode of Market Talks on the Cointelegraph Markets & Research YouTube channel. And don't forget to like and subscribe to stay updated with the latest content.