• The crypto market is at its lowest since March 17, and the momentum indicators signal that bears are taking control in the short term.
• An increase in stablecoin liquidity is essential for on-ramps of new liquidity from hedge funds, family funds, and high-net-worth individuals.
• There have been setbacks caused by FTX, Celsius, and other exchanges as well as losses of institutional backbones like Genesis, Silver Gate, and Signature Bank which has hindered on-ramps and off-ramps for large-scale crypto companies.
Is The Crypto Market Primed For Bull Run Soon?
Popular crypto analyst Nicholas Merten of the YouTube channel DataDash recently shared his thoughts on the current state of Bitcoin and the crypto market. He emphasized the importance of analyzing momentum indicators to understand the market’s short-term direction. Despite this, the weekly timeframe still shows bulls in control since January’s breakout. This stagnation has led to questions about whether the market is ready for another bull run.
Bitcoin has not made new highs for nearly a month, and its price is at its lowest since March 17. Momentum indicators such as Dash Report and Lux Algo signal that bears are taking control in the short term. Nicholas mentioned that numerous narratives have been applied to explain the potential for a new bull market but none of them have held true so far; including central bank balance sheet expansion or bank runs.
Liquidity Is Key For New Bull Markets
An increase in stablecoin liquidity is necessary for bringing new liquidity from hedge funds, family funds, and high-net-worth individuals into crypto markets. According to Nicholas, despite this need for increased liquidity;the current state of the market shows a contraction in both global liquidity and stablecoin liquidity with no new entries in sight; thus raising doubts about a potential bull run soon.
Current Challenges In The Crypto Space
Nicholas noted several challenges faced by cryptocurrency space such as setbacks caused by FTX, Celsiusand other exchanges coupled with loss of institutional backbones like Genesis Silver Gateand Signature Bank which further hinders on-rampsoff rampsfor largescale crypto companies resultingin stagnationof dollar liquiditywithin these markets .
Despite some issues faced by cryptocurrency industry currently it appears that there could be potentialfor anotherbull runif global liquidty continues to consistently rise along with an influxof new entrantsinto these markets .