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- The mass adoption of Bitcoin globally is perceived as a desire for an alternative, better store of value in the long haul as more governments gradually devalue their respective fiat currencies.
- Chris Wood from Jefferies has inferred that short-term Bitcoin price volatility will be dismal in the long term amid mainstream adoption.
In the wake of the much anticipated Mt.Gox repayment that began on Friday, Bitcoin’s (BTC) price registered heightened volatility. The flagship coin dropped as low as $53,898 earlier on Friday but has since rebounded above the crucial support level of around $56k at the time of press.
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The heightened Bitcoin volatility, which caused heavy crypto liquidations in the past 24 hours only akin to the FTX collapse, caused a significant spike in fear. Moreover, the fear and greed index dropped from 44, neutral, to around 29, fear, in the past 24 hours, as more whale traders, led by the German government, continued to dump in the secondary market.
Bitcoin to Benefit from the Collapse of US Dollar
According to Chris Wood, the Chief Strategist of New York-based Jefferies investment bank, the mainstream adoption of Bitcoin is inevitable amid the failing fiat currencies. Wood recently informed investors through a note that the allocation of Bitcoin in investment portfolios should be viewed as long-term insurance and not as a short-term trade. Wood noted:
The allocation to Bitcoin was introduced because it represents a legitimate alternative for risk-averse capital looking for a store of value, amidst the accumulating evidence over the past two decades and more of policies of currency debasement in the G7 world,
According to Wood, the mainstream adoption of Bitcoin against the US dollar and other fiat currencies is largely propelled by poor monetary policies. As Crypto News Flash has severally pointed out, the notable rise of the BRICS movement has been challenging the US dollar’s global dominance bolstered by the G7 member states.
Gradually, more global enterprises and investors are adopting Bitcoin and other crypto assets for seamless cross-border payments. As a result, the global US dollar dominance is spelled to decline in the coming years.
Will the Bulls Market Again?
According to a popular crypto analyst alias PlanB, the Bitcoin bull market is on time despite the increase in midterm pessimism. A Matrixport analyst, who argued that the Bitcoin rally will continue as the US general elections approach, took a similar stance.
Additionally, the Fed is expected to cut its benchmark interest rate later this year as inflation gradually drops. With the fourth Bitcoin halving impact yet to be fully priced in, it is safe to assume that the crypto bull rally is not over and will soon resume.
#Matrixport MoT Research📊-Jul 5: Summer Consolidation Despite Political and Macro Tailwinds#BTC #ETH #Elections2024 #CryptoFinance #cryptocurrency pic.twitter.com/gaYwJZAulp
— Matrixport Official English (@Matrixport_EN) July 5, 2024
Midterm BTC Price Expectations
From a technical standpoint, Bitcoin price has been consolidating in the past four months after reaching its all-time high (ATH) of around $73,000. According to a popular crypto analyst alias Mustache on the X platform, Bitcoin price will likely rebound to a new ATH in the coming weeks.
I'm probably still one of the few bulls out there, but I don't think the bull market is over.
Corrections happen and nobody hits the exact bottom, so all this hate is useless.
btw. I've seen this pattern before. pic.twitter.com/w0cbEiFX0I
— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 🧲 (@el_crypto_prof) July 5, 2024
