The recent downturn in the Bitcoin price has left many puzzled. But experts Austin Arnold and Mark Yusko believe they have some answers.
We’ve broken down everything they had to say in their latest Youtube Video for you – clear as day. Read on!
The Influence of Global Liquidity
One factor Yusko points to is global liquidity. He says that liquidity, or the ease with which assets can be bought and sold, is a major driver of market movements, especially in the digital realm.
When people think about Bitcoin’s value, they often think about its value in relation to the dollar or other national currencies. But Yusko says that it’s also important to consider Bitcoin’s value in relation to other cryptocurrencies, like the Argentine peso or the Turkish lira.
Interestingly, while Bitcoin has been rising in value in these currencies, its growth rate in dollars has slowed down. This suggests that global liquidity is playing a role in suppressing Bitcoin’s price.
Read More: Bitcoin Price on the Brink of Relief Rally, Says Crypto Analyst
Lack of Monetary Stimulus
Another factor Yusko believes is contributing to Bitcoin’s downturn is the lack of monetary stimulus. In the past, central banks have pumped money into the economy to help boost growth. But this has not been happening as much in recent years.
This lack of monetary stimulus is making it harder for businesses to borrow money and invest. As a result, the economy is growing more slowly, which is also suppressing Bitcoin’s price.
Market Events
Arnold also believes that market events are playing a role in Bitcoin’s price movements. He points to the recent news about BlackRock’s ETF application and Ripple’s victory against the SEC.
These events initially led to a surge in Bitcoin prices. But the prices later fell back down, suggesting that investors may have been buying on rumors and selling on news.
Yusko also believes that influential insiders may be deliberately pushing down prices in order to buy assets cheaper. This could be contributing to the short-term downward pressure on Bitcoin prices.
The Anticipation of a Bitcoin ETF
One event that could have a major impact on Bitcoin prices is the approval of a Bitcoin Exchange-Traded Fund (ETF). An ETF would allow investors to buy and sell Bitcoin on major stock exchanges.
Also Read: SEC Could Prepare Fresh Reasons to Deny Bitcoin ETFs, Says Bloomberg Analyst
Arnold believes that the approval of an ETF could usher in an era of mass adoption for Bitcoin. He says that an ETF could attract significant investments from the advisory industry, significantly impacting Bitcoin’s price.