Sentiment has dramatically changed over the course of the last few months, as the price of major assets have appreciated significantly since the lows of the FTX collapse, when the price of Bitcoin briefly dipped below $16k. There are all sorts of reasons why the prices are appreciating, and why people ought to be bullish in the coming week.
Bitcoin broke the key $21k level this week
One of the main reasons that the markets are now so bullish is because Bitcoin has managed to break above the important psychological level at $21k, and has managed to strengthen above this price, even briefly appreciating above $23k.
The $21k has been an extremely important level for a variety of reasons, and now that the price has broken out above this level and appears to have confirmed support, there are many who now believe that it is likely that the bear market has now ended.
The UAE wants to use crypto for internal trade in the future
One statement from the UAE in particular has excited the markets this week, as the country has recognised the importance of cryptocurrencies and their potential applications for international trade.
Dubai has long been positioning itself as a frontrunner in the Bitcoin space, which makes sense given that many believe it to be the most halal form of money that the world has ever seen.
According to Thani Al-Zeyoudi, the Foreign Minister of the UAE, cryptocurrencies are to play a far more important role in the future of trade, particularly Bitcoin and stablecoins. This is thanks to the fact that it is so easy and cheap to send them across borders, and this process can be enacted permissionlessly.
UAE is positioning itself as a major #crypto player. Has already passed sweeping legislation and recently a minister was quoted saying that crypto is a big part of the country's future.
The message is clear, get on the crypto train or get left behind!
— Lark Davis (@TheCryptoLark) January 23, 2023
Falling inflation makes a Fed Pivot more likely
In a recent article published on his Substack, Arthur Hayes makes the case that the falling inflation numbers could mean that the Federal Reserve becomes emboldened and prepares for a pivot.
In such a scenario, the quantitative tightening that has plagued the markets through much of 2022 could soon come to an end, as pressure rises on Chairman Powell to reverse his policy of low interest rates, or at the very least stop raising them higher.
In such a scenario, where the cost of capital ceases the become more expensive, it will once again become easier for companies to take out debt to buy assets with, and one would expect asset prices to rise.
- How to Buy Bitcoin – Beginner’s Guide
- Our Cryptocurrency Guides
- 10+ Best Altcoins to Invest in 2023 – Which New Altcoins to Buy?
Wall Street Memes (WSM) - Newest Meme Coin
- Community of 1 Million Followers
- Experienced NFT Project Founders
- Presale Live Now - wallstmemes.com
- $10+ Million Raised - Ends Soon