- August ended with Bitcoin experiencing a pullback after postponing its decision on a Bitcoin spot Exchange-Traded Fund (ETF).
- Acheson adds, ‘The Fed could be encouraged to change its strategy in case of an emergency,’ and this could potentially reignite the money-printing days seen in 2020-21.
- Pompliano believes that regulators are likely to approve a spot-based Bitcoin ETF in the coming months, which could significantly increase BTC accessibility and adoption.
There are many critical developments for Bitcoin, but there’s one detail that investors may not be paying attention to, which could bring an uptrend for BTC!
Developments in the U.S. and Possible Scenarios for Bitcoin
As the world’s leading cryptocurrency, Bitcoin appears to be on shaky ground as it enters a challenging month, September. This uncertainty stems from a combination of the U.S. Securities and Exchange Commission’s (SEC) recent decision and broader macroeconomic concerns.
When August ended with Bitcoin postponing its decision on a Bitcoin spot ETF, the cryptocurrency experienced a pullback, leaving investors wondering about the timing of potential mainstream adoption of Bitcoin investment vehicles.
According to Noelle Acheson, the author of ‘Crypto is Macro Now,’ investors should closely monitor the growing U.S. budget deficit. Acheson notes that an expanding deficit could lead to increased debt issuance, but declining demand for U.S. government bonds worldwide and central bank efforts to reduce balance sheet assets could lead to a lack of buyers.
Acheson adds, ‘The Fed could be encouraged to change its strategy in case of an emergency,’ which could potentially reignite the money-printing days seen in 2020-21. Acheson also stated:
“This should, theoretically, lead to a scenario where BTC once again outperforms equities, due to its liquidity sensitivity, inverse relationship with the dollar, and independence from economic downturns affecting major global economies.”
Bitcoin has a historical pattern of performing poorly in September, with six consecutive years of challenging performance. Even during the last stages of the 2021 bull market, Acheson noted that during this period, Bitcoin initially suffered a 7% loss and then gained 40% the following month.
The Bullish Perspective
Bitcoin bull Anthony Pompliano offers a more optimistic view amidst these challenges. He believes that regulators are likely to approve a spot-based Bitcoin ETF in the coming months, which could significantly increase BTC accessibility and adoption.
Furthermore, Pompliano suggests that the approval of a Bitcoin ETF, expected around April 2024, coinciding with the next Bitcoin halving, could propel Bitcoin into a full-fledged bull market.
While Bitcoin navigates these turbulent waters, the crypto community continues to keep an eye on regulatory developments, macroeconomic changes, and the potential for catalysts on the horizon that could reshape the market.
