Unlocking the Next Bitcoin Bull Run: Insights from Nansen Analysts

• A new report suggests that the next bull market in Bitcoin (BTC) could be influenced by the regulatory stance of the United States in the cryptocurrency sector and a steady decrease in core inflation.
• Nansen, an on-chain analytics platform, highlights the possibility of a bullish trend in Bitcoin if there is clarity in crypto regulations in the US and a stable decline in core inflation.
• The current stagnation in monetary policy scenarios and the resistance of core inflation to global slowdown despite the decline in energy and commodity prices may lead to continued restrictive monetary policies outside of Asia, affecting risk assets negatively.

Bitcoin’s Next Bull Market Could Depend on US Regulatory Stance and Core Inflation

A recent research report by Nansen, an on-chain analytics platform, suggests that the next bull market in Bitcoin (BTC) may be influenced by the regulatory stance of the United States in the cryptocurrency sector and a steady decrease in core inflation. According to Nansen, the clarity in crypto regulations and a stable decline in core inflation could pave the way for a bullish trend in Bitcoin.

Regulatory Clarity and Core Inflation

Nansen points out that the current monetary policy scenarios have pushed recession scenarios into the background. Despite the global slowdown in inflation due to the decline in energy and commodity prices, core inflation has remained resistant, standing at an annual rate of 5.3%. This resistance suggests that restrictive monetary policies may continue outside of Asia, potentially impacting risk assets negatively.

Bitcoin Sales and Volatility

Currently, Nansen observes that Bitcoin sales are occurring in small amounts, and there has been a decrease in volatility in the cryptocurrency market. These trends indicate that the market has already priced in many regulatory and macroeconomic negative news.

The Need for Regulatory Clarity and Stable Core Inflation

However, Nansen highlights that for Bitcoin to enter a bullish trend and experience a rise in price, there is a need for regulatory clarity in the cryptocurrency sector in the United States and a stable decline in core inflation. These factors are crucial for instilling confidence in the market and attracting more investors.

According to Coingecko, Bitcoin has gained 7.5% in value in the last 30 days and has experienced a 7.9% increase in the past 24 hours, currently trading at $28,842.