- Tony Edward, founder of Thinking Crypto, suggested crypto markets may be leaning toward a bullish outlook
- Macro factors, including the end of quantitative tightening and potential Fed interest rate cuts, might drive liquidity into stocks and cryptocurrencies, according to Edward
- Edward shared that the dollar currency index is crashing, which would lead to an increase in asset prices
Crypto markets may be leaning toward a bullish outlook from a macro perspective, according to Tony Edward, founder of the Thinking Crypto YouTube channel and podcast. Speaking in a recent video, Edward highlighted several macroeconomic factors that could fuel a recovery in crypto prices.
Edward said:
We are seeing an alignment of different items that are leading us back to the bull market from a macro perspective, and that will mean more liquidity coming into the markets for stocks, cryptocurrencies, and so forth.
Furthermore, Edward pointed to recent news that prominent bearish investor Michael Burry closed his large short positions against the stock market at a loss, which is a bullish indicator. Edward also highlighted recent Consumer Price Index (CPI) data showing inflation may be decreasing in the United States.
Edward also mentioned that futures markets are now indicating the Federal Reserve may start lowering interest rates as early as May 2024. He believes markets are anticipating an end to rate hikes in 2024, which will pave the way for a new quantitative easing cycle.
“While this news is not crypto-specific, it is macro-specific, and that means more liquidity to come into markets both in stocks as well as crypto,” said Edward. Furthermore, Edward shared that the U.S. Dollar Currency Index (DXY) has been crashing.
Based on these macroeconomic factors, Edward predicted Bitcoin prices would hit $40–$50K in the near term, followed by a “mini altcoin season” where alternative cryptocurrencies would outperform Bitcoin. Though he expected eventual new all-time highs, he cautioned there may be pullbacks along the way.
Edward also covered recent criticism of SEC Chairman Gary Gensler’s reluctance to approve a Bitcoin spot ETF. He highlighted ARK Invest CEO Cathie Wood’s comments, alluding to Gensler putting his political ambitions ahead of innovation. Edward stated that Gensler has slowed crypto startups to give traditional Wall Street firms time to enter the crypto space.
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