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Macro Factors Setting Stage For Crypto Rally



At long last, the crypto asset market has started to get back on its feet after 2018's harrowing decline. Technical indicators are seemingly falling in place for a recovery, and fundamentals have begun to present a positive precedent for Bitcoin (BTC).

In fact, one analyst writes that there is currently a "perfect storm" being brewed for the leading cryptocurrency at the moment, citing the rise in certain macroeconomic trends that could be for BTC.

Related Reading: Survey: 72% of Institutional Investors Believe Crypto Prices Would Rise in a Recession

Macro Catalysts Could Boost Bitcoin [19659005] Brendan Bernstein, the founding partner of Tetras Capital, an industry investment firm whose partners seem skeptical of Ethereum, recently laid out why he believes BTC's long-term prospects are healthy

Like Travis Kling, Bernstein, a proponent of the " Bitcoin, not blockchain raison d'etre, dictated to the Federal Reserve's propensity to list quantitative easing (QE) strategies. While QE, which is a fiscal policy that sees central banks purchase assets to boost the economy, has arguably been a positive catalyst for cryptocurrencies for the better part of a decade, some of which the economy might get dicey.

Anti-establishment figures, presumably like Bernstein, wary that with the overutilization of QE, the economy could be put in a bad place, potentially giving BTC a chance to rally as a non-correlated store of value.

Next, the Tetras founder looked to the rise in democratic socialism (seen in the 2020 election cycle) and modern monetary theory (MMT), two political and economic strategies, which are necessary for the betterment of the economy, but could result in inflation or other fiscal shortcomings. With one of Bitcoin's most-touted characteristics being the deflationary issuance schedule, the rapid inflation of prominent government-issued currencies would likely give cryptocurrencies an opportunity to rally and eat up the global monetary pie.

With Bernstein claiming that 10,000 baby boomers are retiring daily, leading to a skyrocketing number of entitlements, central banks could put under even more pressure, than global governments struggle to fill the needs of the retirement system. If Anthony Pompliano once wrote, pension funds do not have the ability to pay their dues, leaving something like Bitcoin the only answer to their problems. [Read More] Bitcoin Could Swell To $ 1.5 Million If It Absorbs All Fiat and Gold Holdings [19659015] The bitcoin pundit looks to the US at put the cherry on the top of the crypto cake sovereign debt issue, which will be of interest to surpass the tax receipts themselves by 2022. Although some economists see ways of this debacle, many libertarians claim that this issue, the Federal Reserve's only option would be to print its way out of

Crypto Investors About The Moon

Bernstein's recent optimistic quip comes as crypto investors the world over, and notable ones at that, have also started to express unwavering hope for the long term prospects of bitcoin. In other words, Bernstein is not the only investor that BTC is from biting the dust, despite a scathing hit piece from The Economist, which lambasted cryptocurrencies and their premises.

Alistair Milne, the chief investment officer of and industry fund, recently took to Twitter to write that "pretty much every bit bit bit trader" that he respects is leaning bullish. Technical analyst The Crypto Dog echoed this too, remarking on Twitter that knows many that are bullish, in spite of the downturn

It is clear that underlying industry developments, coupled with the recent price action, have begun to assume many cryptocurrency investors that this rally has, and that the bear market is finally over. However, some cynics claim that it's too early to call for a rally, citing bull traps and fake outs. But who will come out on top

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