Also, in this context, he noticed a full reset of funding rates, activization of long-term holders after taking profits in Q2, 2024, and miner capitulation losing traction.
The sentiment in the altcoin segment is highly pessimistic, which is regularly interpreted as a “necessary” phase before the next stage of a rally.
In terms of macro, there are some more signs of weaker national fiat currencies ahead. In the past, this always triggered interest in Bitcoin (BTC) as a hedge against inflation and macro instability.
Also, with both Bitcoin and Ethereum spot ETFs launched, large institutional holders of BTC and ETH are actively selling their bags to the new generation of investors, which is yet another evidence of strong interest.
As covered by U.Today previously, prominent macro economist Raoul Pal stressed that he sold zero crypto amid the most painful phase of the collapse.
Last but not least, Nadeau highlighted that all CeFi majors that contributed to the overleverage last cycle such as BlockFi, Genesis and Celsius are simply not there any longer.
As such, he sees no reasons to be pessimistic about BTC and other cryptos in the long term:
He concluded that given all the amount of fear on the market, what is happening today can be compared to early Q4, 2020, when Paul Tudor Jones called BTC the “fastest horse” and Michael Saylor started the MicroStrategy Bitcoin saga.
Back then, Bitcoin (BTC) was surging in the $10,000-$15,000 range, while today it is at $58,000, capping off nearly 1.2% gains in the last 24 hours.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
