A trader who rode the crypto breakout earlier this year warns that Bitcoin (BTC) could see muted price movements for an extended period of time.
In a new strategy session, pseudonymous analyst DonAlt tells his 52,800 YouTube subscribers that Bitcoin barely moving despite the launch of PayPal’s dollar-backed stablecoin PYUSD is a telling sign.
The crypto strategist adds that even the volatility in the stock market is not enough to bring BTC’s price action back to life.
“The PayPal news, back when the market was trading decently, that would have pushed the price up. PayPal just being, ‘Oh, we want to get into the stablecoin game.’ It doesn’t really have to do anything with Bitcoin or ETH or any of the other coins, just that there’s interest from PayPal would have pushed the market like 10%.
But that’s not happening, and then you get the ETF delay. It’s not necessarily a big surprise, but also no price movement… These daily candles literally like 1% or 2% moves and that’s Bitcoin when the S&P is trading like crazy.”
DonAlt goes on to say that Bitcoin’s choppy conditions could last for the next six months.
“The market is just not moving, and it doesn’t really look like it wants to anyway. I could see this continuing for the next half a year.”
The crypto analyst says that one thing that might restore Bitcoin’s volatility and bullish momentum is the reversal of the Federal Reserve’s tight monetary policies, similar to what happened in 2020 when the central bank pushed interest rates close to 0% in response to the Covid crisis.
“I think for now, it’s going to stay boring. If you see something like Covid-esque in a response from governments again, just giga long it again but until then, it’s a little bit of a stretch. I want to see big, big strength and that crypto-specific before I’m actually too interested because I think the trade is done.”
At time of writing, Bitcoin is worth $29,248.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Tithi Luadthong
