Crypto: The Market is Rising Again!

The crypto market, often described as a playground for the brave and the daring, is currently experiencing a phase of impressive resilience. After months of turmoil, signs of a recovery are beginning to appear, reigniting hope among investors. Bitcoin seems to be surfacing after a period marked by massive sell-offs and a drop in liquidity. Analysts, traditionally cautious, are now optimistic. They envisage a strong comeback for the crypto market, driven by improvements in macroeconomic conditions. But is this resurgence durable? Let’s explore the underlying dynamics of this recovery.

A relief for the crypto market

The crypto market has gone through a tumultuous period where forced Bitcoin sales largely dominated the discussions.

These sales, often driven by the need to liquidate positions to avoid greater losses, exerted enormous pressure on the market, leading to a sharp drop in prices.

However, this phase now seems to be behind us. According to Matthew Sigel, head of digital asset research at VanEck, Bitcoin is entering a period where it has historically shown signs of recovery.

The upcoming US elections and a return to a more favorable liquidity environment could play a decisive role in this rebound.

After withstanding headwinds, notably with the sale of nearly 50,000 bitcoins by the German government, the market is showing signs of resilience.

Creditors of the Mt. Gox exchange, after being reimbursed, largely chose to keep their bitcoins, highlighting renewed confidence in the asset. This newfound stability marks the end of a period of instability, allowing Bitcoin to regain its momentum.

The engine of the recovery

Another key factor in this recovery is the increase in global liquidity. After a prolonged stagnation, signs of a liquidity uptick are beginning to appear, offering valuable support to the crypto market.

Francesco Madonna, CEO of BitVaulty, recently pointed out that this increase in liquidity could well trigger a new bullish run, possibly the most significant in crypto history by 2025.

The increase in liquidity is crucial for markets, as it allows investors to enter and exit positions more easily, thereby reducing volatility.

With increased liquidity, Bitcoin could find itself in a position of strength, potentially following the bullish trends of gold, as suggested by Madonna. Crypto traders, always on the lookout for market signals, are beginning to reposition themselves, anticipating a new wave of growth.

Investment strategist Lyn Alden shares this optimism, although she notes that the lack of price action in Bitcoin in recent months is not surprising. For her, the real turning point will come in 2025 when the market fully benefits from a more favorable liquidity environment. If these analysts’ predictions come true, we could see Bitcoin returning to its historical highs, or even beyond.

The crypto market, particularly Bitcoin, is at an important crossroads. The end of forced sales, the increase in global liquidity, and the anticipation of the US elections create a context where recovery seems not only possible but probable. However, this recovery remains fragile and depends on many external factors, ranging from global economic policies to geopolitical developments.