According to technical and fundamental analysts, Bitcoin and other cryptocurrencies are on the brink of a significant rally. A surge in global liquidity and undervaluation in commodities have been cited as key factors driving this optimism.
The potential for a long-term bull market in crypto and commodities has sparked widespread attention among market participants.
Michaël van de Poppe’s bullish forecast
Michaël van de Poppe, a macroeconomics analyst and founder of MN Consultancy, shared his positive outlook on crypto and commodities on X. He argued that these assets are undervalued and could enter a decade-long bull run. Van de Poppe pointed to a Bloomberg chart showing historical data on equity valuations and commodities trading at discounted prices. He highlighted that current commodity valuations are at levels last seen in 1971 and 2000, suggesting a potential for significant growth.
Source: Michaël van de Poppe
The chart, which van de Poppe referenced, illustrates how commodity valuations have dipped below the levels witnessed during the 2000 tech bubble. The tech bubble’s aftermath saw an eight-year bull run in commodities, which was interrupted by the 2008 financial crisis. Since then, commodity valuations have struggled to recover fully.
Raoul Pal’s positive outlook on Bitcoin
Raoul Pal, founder and CEO of Global Macro Investor, also expressed a bullish stance on Bitcoin. Pal believes an increase in global liquidity, driven by debt refinancing in major economies like the United States, China, Japan, and Europe, will likely fuel the next Bitcoin bull run. He emphasized that Bitcoin is poised to benefit from a portion of this global liquidity, leading to the next leg in its 2024 cycle.
Pal’s insights were shared in an X video, where he drew a direct correlation between Bitcoin’s price and the global M2 money supply. As global M2 rises, Pal expects Bitcoin’s price to follow suit, potentially sparking a significant rally in the cryptocurrency market.
Titan of Crypto’s prediction for Bitcoin’s price
Another analyst, Titan of Crypto on X, predicted a three-month rally for Bitcoin based on its recent price performance. The analyst pointed out that Bitcoin has historically rallied at least 40% after bouncing off the 50-week simple moving average in previous cycles. Titan of Crypto shared a weekly chart showing Bitcoin’s price testing a key support zone, further supporting the bullish outlook.
The analyst suggested that if Bitcoin rallies by 71% from its current level, it could reach an all-time high of $92,000. This prediction aligns with the broader sentiment of an imminent bull run for Bitcoin, driven by technical factors and increasing global liquidity.
As Bitcoin continues to gain momentum, industry experts remain optimistic about its potential to reach new heights. The upcoming Federal Reserve meeting on September 18th could play a crucial role in determining the direction of interest rates, further influencing market sentiment. The outlook remains positive, with many analysts anticipating a strong rally in the coming months.