Bitcoin Has Entered a Stage of Forming a Local Bottom
The escalation of the U.S.–China trade war in early October triggered a cascade of liquidations in the cryptocurrency market, driving prices down. Now, an easing of macroeconomic risks could kick off an upward rally in Bitcoin, the expert noted.
Another factor that Dawson believes could lead to a sustained positive move for the leading cryptocurrency is a further cut in Fed interest rates. In that scenario, speculative interest in traditional financial instruments declines, prompting investors to pursue riskier strategies, including crypto investments.
According to CoinMarketCap, Bitcoin rose nearly 4% over 24 hours, reaching a local high of $111,100, which sparked a modest rally across the broader altcoin market.
“We are likely seeing a local bottom for Bitcoin, which is extremely sensitive to such events. If all concerns are finally dispelled, we could see significant upside. However, the risk of an escalation in the U.S.–China trade war still exists, and that could trigger further declines,” Dawson said.
Earlier, JAN3 CEO Samson Mow suggested that the next Bitcoin bull rally could outpace the rate of gold’s price appreciation.
See also: "Coinbase Institutional: 68% of Investors Expect Bitcoin to Rise in the Next Six Months"
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