The post How Bitcoin’s Trajectory Mirrors Past Federal Reserve Cycles: Decoding BTC Price Path appeared first on Coinpedia Fintech News
Renowned Cryptocurrency Analyst, TedTalksMacro, Reveals Striking Similarities Between Bitcoin’s Current Path and the September to November 2019 Period, while Highlighting the Federal Reserve’s Impact, Price Trends, and Potential Market Trajectory.
In a recent comprehensive analysis, TedTalksMacro, a distinguished authority in the cryptocurrency sphere, unveils a compelling connection between Bitcoin’s ongoing journey and the pivotal September to November 2019 period. This examination not only sheds light on the Federal Reserve’s actions but also traces Bitcoin’s price movements, suggesting potential directions for the cryptocurrency market.
Tracing Federal Reserve Cycles: A Blueprint for Bitcoin’s Course
In 2019, the Federal Reserve orchestrated three rate cuts by October and expanded its balance sheet in September. Similarly, in 2020, swift quantitative easing (QE) countered unforeseen events driving an economic downturn.
Fast-forwarding to 2023, the Federal Reserve again expanded its balance sheet in March, coinciding with market expectations of a substantial rate cut by year-end. Anticipation for 2024 prompts contemplation on whether rapid QE deployment will recur in response to a potential economic downturn, indicated by leading indicators.
Bitcoin’s Trajectory: A Mirrored Reflection
In 2019, Bitcoin’s price experienced an 83% drop from its all-time high (ATH), reaching a nadir about 500 days prior to the 2020 halving event.
Similarly, in 2023, a price floor materialized following a 78% plunge from the ATH, aligning with a timeframe of about 500 days preceding the 2024 halving. TedTalksMacro emphasizes that these cycles consistently involve new ATHs, echo bubbles, bear markets, and consolidation phases, each bearing nuanced distinctions driven by factors extending beyond pricing.
Unveiling Profound Insights from TedTalksMacro
The second surge during the 2021/22 period displayed heightened intensity compared to previous instances, attributed to the significant influence of FTX degeneracy, overshadowing the 2018 echo.
Examining the anomaly of COVID’s unforeseen price fluctuations, TedTalksMacro contends that replicating such a scenario in the current cycle requires new black swan events, potentially involving global conflicts. Moreover, TedTalksMacro cautions against prematurely predicting fresh lows, as history consistently illustrates that betting against established trends is often fruitless.
Since March 2023, TedTalksMacro’s perspective has remained steadfast, indicating an impending consolidation phase as a probable precursor to new highs in late 2024 or 2025. Amid Bitcoin’s ongoing evolution, TedTalksMacro’s insights offer a vital framework for deciphering dynamic transformations within the cryptocurrency realm.
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