A new Bitcoin bull market will not occur until these three specific things happen, HTX research said. | Source: CCN.
Key Takeaways
HTX Research says Bitcoin’s next bull market depends on three factors.
The firm argues Bitcoin now trades as a global liquidity asset.
The report comes days after former Binance CFO Wei Zhou identified three similar catalysts.
Bitcoin’s next sustained bull market will require three specific changes, HTX Research said in a quarterly market outlook published on Thursday.
The prediction comes as Bitcoin’s price trades at around $61,957, according to CoinMarketCap, down over 50% from its all-time high.
Three Things That Could Drive the Next Bull Market
HTX Research said three developments will largely determine whether crypto markets recover during the third quarter.
The first is an easing in monetary conditions.
“The key macro variable is not a single meeting, but whether the Fed continues to defend a hawkish reaction function,” the report said.
It added that persistent inflation could keep interest rates higher for longer and continue limiting demand for risk assets.
Secondly, the report pointed to US Treasury liquidity.
Rather than quantitative tightening, HTX said investors should now focus on Treasury issuance, the Treasury General Account, and bank reserves.
It argued that these have become the key drivers of liquidity available to financial markets.
The third factor is regulation.
“Regulatory clarity is the largest policy variable in Q3,” the report said.
“If the CLARITY Act continues to advance, ETH, DeFi, stablecoins, and RWA should have higher beta to regulatory repricing than BTC.”
Bitcoin Now Trades Like a Global Liquidity Asset
Beyond its outlook, HTX argued that Bitcoin’s market behavior has fundamentally changed as institutional participation has increased.
The report said Bitcoin should no longer be viewed primarily as a crypto-native asset or geopolitical hedge, but…
..
