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BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
08/19/2024

Analysts Turn Bullish as Global Liquidity Rises and Bitcoin's "Forced Selling" Comes to an End

The major Bitcoin sell-offs are over, and analysts now see the U.S. election and global liquidity as the key factors ahead for Bitcoin. "After all the forced selling, this is a typical seasonal pattern where Bitcoin tends to struggle for about one to three months after the halving, which happened in April," said Matthew Sigel, head of digital assets research at VanEck, in an interview with CNBC on August 19. On

Analysts Turn Bullish as Global Liquidity Rises and Bitcoin's "Forced Selling" Comes to an End

The major Bitcoin sell-offs are over, and analysts now see the U.S. election and global liquidity as the key factors ahead for Bitcoin.

"After all the forced selling, this is a typical seasonal pattern where Bitcoin tends to struggle for about one to three months after the halving, which happened in April," said Matthew Sigel, head of digital assets research at VanEck, in an interview with CNBC on August 19.

In July, the German government sold 49,858 BTC worth $2.6 billion. Meanwhile, roughly 70% of creditors from the bankrupt crypto exchange Mt. Gox have been repaid, and data suggests many of them are still holding their Bitcoin.

Global Liquidity Surges

Several analysts have noted that global liquidity is starting to climb sharply.

"Global liquidity has started to increase — a pattern is forming," Francesco Madonna, CEO of BitVaulty, wrote on X on August 17.

"Global liquidity is finally rising — could we be looking at the greatest bull run ever in 2025?" added pseudonymous crypto trader Kook.

At the time of publication, Bitcoin was trading at $60,431, according to CoinMarketCap data.

Investment strategist Lyn Alden said she was "not too surprised" by Bitcoin's lack of price volatility, explaining on Natalie Brunell's Coin Stories podcast on August 19 that "global liquidity has been moving sideways for the past two years."

"It makes perfect sense for Bitcoin to be ranging around its current price," Alden said.

Alden believes that in 2025, as the market shifts into a "liquidity-friendly" environment, Bitcoin could push past its current all-time high of $73,679.

Related: Bitcoin Buyers Wait Below $58K as Japan Wipes Out Stock Crash Record

Meanwhile, Sigel argued that the U.S. presidential election in November will be a pivotal moment for Bitcoin's price.

He contended that regardless of the election outcome, the macroeconomic conditions will remain the same for the next several years.

He said markets need "the realization that no matter which candidate wins, we're still going to face four more years of irresponsible fiscal policy."

"History shows Bitcoin really gains momentum at that point," Sigel said, before adding that "we are buyers, we genuinely think it can recover."