The post Bitcoin ‘Flipping Frenzy’: Here’s Why June 2023 Could Ignite A Massive Bull Rally appeared first on Coinpedia Fintech News
Renowned crypto analyst James Altucher, the owner of InvestAnswers, offers a thought-provoking perspective on Bitcoin, providing valuable insights into the current market situation.
Altucher highlights an intriguing scenario in the cryptocurrency landscape. Despite the Fear Ingredient Index, a measure of market sentiment, remaining relatively neutral last week, there is an observable disconnect between Bitcoin’s performance and that of other cryptocurrencies.
While the conventional Season Index suggests an ongoing Bitcoin season, a comparison between Bitcoin and altcoins over the past week paints a different picture. Altcoins, ranging from Litecoin to Ethereum and Dogecoin, appear to have outperformed Bitcoin.
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This unexpected occurrence is reflected in Bitcoin’s decreased market dominance, challenging the validity of the Season Index. With less than 11 months remaining until the next Bitcoin halving event, James Altucher emphasizes the importance of this milestone.
Anticipated to take place around April 14th, 2024, the Bitcoin halving event will effectively halve the supply of Bitcoin mined from blocks. Historical trends suggest that this reduction in supply could catalyze a significant increase in Bitcoin’s price.
Impact of US Recession and Quantitative Easing
Simultaneously, Altucher points out the likelihood of a recession in the US around the time of the halving. He predicts that this could lead to quantitative easing, which essentially expands the money supply. The combination of this influx of capital and the reduced supply of Bitcoin post-halving could further stimulate the price of Bitcoin, making it an attractive asset for investors.
Historical Indicator of a Bitcoin Rally
Altucher draws attention to a recurrent pattern in Bitcoin’s price action. He refers to a notable trend where the long-term holder realized the price of Bitcoin surpasses the Bitcoin realized price. This phenomenon, known as ‘the flipping,’ has historically resulted in a significant Bitcoin rally. Interestingly, this event tends to occur in June, a pattern observed since 2012, with the exception of 2020 due to the pandemic-induced market crash.
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Will History Repeat Itself in June 2023?
As we approach June 2023, Altucher raises the question of whether history will repeat itself. If the flipping occurs this June, it could potentially signal the beginning of another rally, challenging the validity of the old adage “sell in May and go away.”