- Bitwise’s André believes that Bitcoin price has not yet priced in the upcoming Fed’s monetary stimulus.
- The researcher has compared the recent Bitcoin dip to the 2020 Covid crash that was followed by a parabolic rally.
- On-chain data analysis shows that institutional investors have begun reactivating after the recent crypto selloff.
Bitcoin (BTC) price is at the beginning of a major uptrend in the coming months. This is a bold prediction from André Dragosch, the European head of research at Bitwise fund manager, who noted that BTC has already priced in all the bad news but has yet to absorb macro bullish factors.
Bitcoin Faces a Recession-level Growth Ahead
According to André, the Bitcoin price has not yet priced in global growth, thus likely to reaccelerate in the coming months. Furthermore, André noted that the macro indicator (Z-Score) is at the same level it was during the 2020 Covid-crash, which resulted in a major parabolic rally.
The researcher argued that Bitcoin faces a similar macro setup to the post-COVID-19 crash, which yielded a 6x growth in the subsequent months. Furthermore, the supportive crypto regulatory clarity in major jurisdictions amid growing adoption of digital assets by institutions has been on the rise.
“I think global growth expectations will accelerate from here, based on the amount of preceding monetary stimulus – which points to a reacceleration well into 2026,” André noted.
Related: Bitcoin Price Prediction: Buyers Hold $90k as Whales Flip To Aggressive Accumulation
Reasons For BTC’s Explosion
Rebound from a technical multi-support level
From a technical analysis standpoint, the BTC/USD pair, in the weekly timeframe, has retested and rebounded from a multi-year logarithmic rising trendline support. The flagship coin has been moving in a symmetrical rising channel since the rebound after the FTX crash in late 2022.
The rebound recorded in the past few days has further bolstered a potential reversal pattern in the coming months.
Source: TradingView
Renewed demand from institutional investors
The macro bullish outlook for Bitcoin is favored by a renewed demand from institutional investors. The renewed demand from institutional investors is evident from the Coinbase Bitcoin Premium index, which turned positive on Friday after a prolonged negative period.
Notably, Coinbase is a major provider of BTC to institutional investors in the United States, thus traders associate whale demand when the index turns green and vice versa.
Source: CoinGlass
Upcoming Fed’s monetary stimulus amid rising global money supply
The midterm outlook for Bitcoin is also bullish catalyzed by the changing Fed’s monetary policies. On Monday, the Federal Reserve will kickstart its much-anticipated monetary stimulus through its Quantitative Easing (QE).
The Fed is also expected to initiate a series of rate cuts in the coming two months. Notably, Polymarket traders are betting on an 87% chance that the Fed will initiate a 25 bps rate cut in December.
Meanwhile, the rising global money supply is expected to find its way to the Bitcoin market, especially now that gold is hovering in overbought territory.
Related: Bitcoin Gains Momentum as December Rate-Cut Odds Jump to 87%
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