The chief crypto analyst at Real Vision, Jamie Coutts, has expressed optimism regarding the potential for Bitcoin (BTC) and altcoins to appreciate further in value. With a following of 45,700 on X, Coutts shared insights that suggest a looser monetary policy could pave the way for a rally in the cryptocurrency market, although he also cautioned that a subsequent bear market may follow.
Coutts stated that if central banks reverse their current strategy of tightening their balance sheets, it could trigger a new upward movement in Bitcoin and altcoins. This shift, he believes, would likely amplify the demand and performance of altcoins, yet it may also set the stage for a peak that could result in a significant downturn, possibly around 50%. However, he emphasizes that the market has not yet reached such extremes.
Despite recent pullbacks in the cryptocurrency sector, Coutts pointed out that it is unlikely the market has hit its cyclical high. He noted that while liquidity remains supportive, the anticipated explosive growth in momentum has not materialized, leading to frustrations for those seeking quick gains. Coutts commented on the current state of liquidity, stating that it is lagging behind the growth of debt, suggesting that a market top is still a ways off.
Coutts further elaborated on the lack of dramatic price movements, suggesting that Bitcoin’s gradual ascent could mirror the slow pace of global liquidity in this economic cycle. He indicated that this subdued model might imply a less severe bear market but could also foresee a protracted decline as the market adjusts.
In the long term, Coutts highlighted two key trends that bolster the bullish outlook for Bitcoin: the increasing adoption of blockchain technology and the trend of monetary debasement. He argued that these factors warrant a broader perspective on Bitcoin, which he describes as evolving into a critical asset class on a global scale. Coutts also pointed out Bitcoin’s potential as a beneficiary in the age of artificial intelligence and its role in stabilizing and modernizing energy grids, asserting that it is likely to become a foundational asset for global investment portfolios.
Currently, Bitcoin is trading at $113,128.
Investors are reminded to conduct their own research and due diligence before engaging in the high-risk realm of cryptocurrencies. The information presented does not constitute financial advice, and any associated risks are the responsibility of the individual investor.
