The chief crypto analyst at crypto media platform Real Vision, Jamie Coutts, says Bitcoin (BTC) and altcoins possess more upside potential.
Coutts tells his 45,700 followers on X that a looser monetary policy could set the conditions necessary for a Bitcoin and altcoins rally, and a bear market thereafter.
“Central banks, if (when) they reverse their balance sheet tightening, will set off another leg higher — with the move likely accentuated in altcoins. With that will likely come the conditions for a peak and potentially the setup for a deeper fall than what I would expect, worst case approximately 50%. We aren’t anywhere near that yet.”
According to Coutts, it is unlikely that the crypto market has reached a cycle top yet despite the recent pullback.
“Liquidity’s still supportive, but momentum refuses to deliver fireworks, frustrating everyone chasing a parabola. Looking ahead, global liquidity is lagging debt growth—cycle peak? Not likely.”
On what the lack of “fireworks” could portend for the market, Coutts says,
“Bitcoin’s so-called ‘boring’ climb actually echoes the slow crawl in global liquidity this cycle. Ironically, a dull cycle could mean a shallow bear drawdown, but also a longer grind down.”
Over the long term, Coutts says two factors support the bullish case for Bitcoin.
“Still, two secular trends are bulletproof: blockchain adoption and monetary debasement. And for these reasons, it’s best to zoom out and remember Bitcoin is fast becoming global collateral, it’s an AI-beneficiary technology, the driver of energy grid stabilization/modernization and the anchor asset for global portfolios.”
Bitcoin is trading at $113,128 at time of writing.
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