Bitcoin’s Price Subject to Several Factors: YouHodler’s Lienkha

Several factors will impact Bitcoin prices, YouHodler markets chief Ruslan Lienkha believes.

Lienkha said Bitcoin prices remain in a consolidation and corrective phase following the strong growth seen earlier this year. The weekly chart remains optimistic, showing a bullish flag pattern, often indicating an upward trend’s potential continuation. Fundamentally, the outlook also appears favorable for further growth through year-end, as the recent interest rate cut has provided a risk-on signal for traders.

The primary risk to the crypto market stems from macroeconomic factors and the potential for a US recession,” Lienkha said. “However, we won’t have a clearer picture of this likelihood until early 2025. The market has at least three months to benefit from reduced borrowing costs before any potential negative news about a recession surfaces.”

If Donald Trump wins the election, Lienkha believes it could ignite a wave of short-term optimism in the Bitcoin and crypto markets, potentially driving up token prices. Trump’s generally perceived crypto-friendly stance could usher in positive long-term effects for the industry. On the other hand, a Democratic administration is expected to maintain its cautious and conservative approach to crypto regulation, with little change anticipated.

In the long term, even if a recession occurs, Lienkha believes it won’t last indefinitely. The current prices for Bitcoin, ETH, XRP, and SOL present a reasonable opportunity to start accumulating long positions. Any potential downturn caused by a recession should be viewed as another strong opportunity to buy the dip, showcasing the market’s resilience and potential for growth.

Many developed economies have already begun the easing cycle, a positive development,” Lienkha said. “However, the risk of a potential recession still lingers. Economic processes of this scale tend to be slow and have delayed effects. As a result, we are likely to see the impact of easing measures on economies only after several months.”

During this easing period, Lienkha thinks equity markets and riskier assets are likely to experience heightened volatility. As a result, the bond market, with its fixed income, becomes a more attractive option for low-risk profile investors.

“US Treasuries, in particular, serve as a safe haven during uncertain times, offering a solid opportunity to lock in higher interest rates for the coming years as the easing cycle progresses,” Lienkha concluded.



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