IT'S BEGUN: Bitcoin Rallies Towards $100k as Blackrock & Japan CAUGHT Buying

Summary

Bitcoin's recent rally, surpassing $90,000, is fueled by factors such as global economic challenges and investor sentiment shifting towards crypto as a hedge. The IMF forecasts higher inflation and slower economic growth, making Bitcoin attractive due to its lack of traditional earnings and market dependence. Institutional investors, including BlackRock, are buying Bitcoin, while a negative funding rate may trigger a short squeeze, pushing prices even higher. The video also touches on altcoin news, including Solana's surge and SEC-related developments, and forecasts continued Bitcoin momentum into Q2 2025 due to global liquidity correlations.

Takeaways

• 😀 Bitcoin has reclaimed the $90,000 price level after weeks, sparking discussions about a potential rise to $100,000 by May.
• 😀 The International Monetary Fund (IMF) forecasts higher US inflation and lower global economic growth, which is seen as a signal of Bitcoin's decoupling from traditional markets.
• 😀 Bitcoin is being recognized as a hedge against economic instability, particularly as the largest financial market in the world faces earnings slowdowns.
• 😀 The rally in Bitcoin's price is attributed to a combination of investor enthusiasm and exhaustion, with a shift away from traditional risk tied to earnings or Federal Reserve policy.
• 😀 BlackRock is significantly involved in the crypto space, with $381 million in net inflows to Bitcoin ETFs and $1.9 billion in volume for their Bitcoin ETF in just two hours.
• 😀 A number of publicly traded companies, including those in Japan, have been increasing their Bitcoin holdings, contributing to a surge in demand.
• 😀 The perpetual funding rate for Bitcoin is negative, signaling a potential short squeeze and a possible acceleration of price movement due to short sellers being forced to cover positions.
• 😀 Bitcoin's price is highly correlated with global M2 liquidity, with projections suggesting the price could reach $100,000 per coin based on historical trends.
• 😀 Bitcoin's price tends to lag behind changes in global liquidity, with an 80% historical correlation between the two, which could lead to further price increases in the short term.
• 😀 The recent Bitcoin 'death cross' event typically signals a rally in the following weeks, with Bitcoin currently experiencing such a rally despite previous downturns in its history.

Q & A

What caused the recent Bitcoin price rally?

The rally in Bitcoin's price is attributed to multiple factors, including the IMF's forecast of higher US inflation and lower global economic growth. Bitcoin is also being seen as a safe haven asset, decoupling from traditional tech stocks and acting as a hedge against political and economic uncertainty.

Why is Bitcoin considered a hedge during economic downturns?

Bitcoin is seen as a hedge because it does not rely on earnings, and it isn't tied to companies or governments whose growth is being slowed by economic factors. It offers a safe alternative during times of political instability and economic challenges, acting as a store of value.

How has institutional interest in Bitcoin affected its price?

Institutional interest, especially from major firms like BlackRock, has had a significant impact on Bitcoin's price. BlackRock's Bitcoin ETF, for instance, saw $381 million in net inflows, signaling strong demand from institutions, which has contributed to price increases.

What is the significance of the negative perpetual funding rate for Bitcoin?

A negative perpetual funding rate means that short sellers are paying long holders to maintain their positions. This creates a potential for a short squeeze, where short positions are forced to cover, accelerating the price upwards.

What role does global liquidity (M2 money supply) play in Bitcoin's price movement?

Bitcoin's price has historically shown an 80% correlation with global M2 money supply. As global liquidity increases, Bitcoin's price tends to rise, with projections indicating that Bitcoin could reach $100,000 per coin in alignment with global liquidity trends.

What is the 'death cross' in Bitcoin's price chart and what does it indicate?

The 'death cross' occurs when the 50-day moving average crosses below the 200-day moving average, which is often seen as a bearish signal. However, the script highlights that in the past, Bitcoin has historically rallied after a death cross, suggesting a potential for a post-death cross rally.

What impact do US tariffs and trade wars have on Bitcoin's price?

The recent 90-day pause on reciprocal tariffs is seen as stabilizing the market. Without the immediate threat of new tariffs or trade wars, there is less fear of downside shocks, providing a more favorable environment for Bitcoin's price to continue rising.

How is the Federal Reserve's monetary policy impacting Bitcoin and altcoins?

The Federal Reserve's monetary policy, particularly its stance on interest rates and inflation, is crucial for the broader market, including Bitcoin and altcoins. The script suggests that until the Fed cuts rates, Bitcoin's rally is likely to continue, but altcoins might not experience significant growth until the Fed eases financial markets.

What is the outlook for altcoin season?

Altcoin season is expected to occur when Bitcoin's dominance wanes, but it is closely tied to the Federal Reserve's monetary policy. As long as the Fed maintains its current stance, altcoin season remains uncertain, though historically, altcoins perform well during periods of Bitcoin consolidation.

What recent developments are noteworthy in the altcoin space?

Key altcoin developments include the rise of Reserve Rights (RSR) following its listing on Coinbase, and significant movement in the gaming space with Everreach Labs' game Revenge, which is gaining traction on platforms like Epic Games and Twitch. Additionally, Galaxy Digital swapped a large amount of ETH for Solana (SOL), showing increased institutional interest in Solana.