Given the bearish state of the market and the recent Bitcoin price crash below $95,000, it’s unsurprising if many would believe that the end of the bull market is here. However, a crypto analyst negates this possibility, sharing details regarding the current position the market is in this bull cycle.
Bitcoin Price Rally Has Just Begun
According to MartyParty, a crypto analyst on X (formerly Twitter), the Bitcoin price rally since 2023 has been primarily driven by institutional adoption through Spot Bitcoin ETFs. This price increase also occurred without the help of Quantitative Easing (QE), rate reductions, or liquidity injections.
What this means is that while Bitcoin has risen over the past year, the true bull market is yet to come. The analyst argues that a real crypto bull market is expected when the Federal Reserve (FED) shifts to an accommodative stance, suggesting a stop in Quantitative Tightening (QT) and the beginning of rate cuts.
The Federal Reserve plays a critical role in determining the long-term trajectory of Bitcoin and other cryptocurrencies. Historically, crypto bull cycles have thrived in environments where liquidity is high, interest rates are low, and speculative risk-taking is encouraged.
However, since 2022, the FED has aggressively tightened monetary policy to prevent further inflation, raising interest rates and decreasing liquidity through QT. Despite these unfavorable market conditions, Bitcoin experienced a historic uptrend, largely due to institutional inflows into Spot ETFs and political changes, including the inauguration of Donald Trump as the new United States (US) President.
Although the market is currently in a downtrend, with concerns rising over the possibility of a bear market, MartyParty emphasizes that the bull market, where altcoins surge alongside Bitcoin, will likely begin when the FED shifts from QT to QE. The analyst declared that the bull market had not begun at all, highlighting that current market dips and crypto crashes present a prime accumulation opportunity for investors.
He urges the broader crypto community to begin accumulating tokens now, when Fear, Uncertainty, and Doubt (FUD) still dominate the market and sentiment is negative. Historically, periods of market decline often precede major price surges; however, investors should still maintain caution as the market remains volatile and unpredictable.
Analyst Says Market Is Positioned At A Bear Trap
While MartyParty claims that the bull run has not even begun, the analyst has also revealed that the market may be in a bear trap. For more clarity, a bear trap is a market situation where an asset’s prices drop rapidly but quickly reverse and continue on a stronger upward momentum. Depending on how severe the price declines are, a bear trap can easily be confused for a bear market.
The analyst has warned investors not to fall for this market’s bear trap, predicting the onset of a full-fledged bull market when FED rates decrease. He highlights that a critical moment to look out for was March 19, when the Federal Open Market Committee (FOMC) meeting will provide updates on the US economic outlook and potential rate cuts.
