Highlights:
- Michaël van de Poppe foresees a long-term rally in undervalued crypto and commodities.
- Bitcoin might surge in October if the Fed cuts rates, boosting confidence.
- Increased global liquidity could drive Bitcoin’s price up to $92,000.
Analyst and entrepreneur Michaël van de Poppe suggests that crypto and commodities markets could be on the verge of a parabolic rally. He points out that these assets are still “extremely undervalued.” In his September 15 post on X, van de Poppe highlighted that commodities were last undervalued at similar levels in 2000 and 1971.
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He stated:
“Commodities & crypto are extremely undervalued and it’s likely that commodities go into a 10-year-long bull market. I’m expecting a lot of upside from these two asset classes.”
The index indicates that commodities are currently valued lower than during the 2000 bubble before the markets surged ahead of the 2008 financial crisis.
The last time we saw these valuations for commodities were 1971 and 2000.
Commodities & #Crypto are extremely undervalued and it's likely that commodities go into a 10-year long bull market.
I'm expecting a lot of upside from these two asset classes. pic.twitter.com/Ab1NVFZSKX
— Michaël van de Poppe (@CryptoMichNL) September 15, 2024
Impact of Federal Reserve’s Rate Decision
More analysts predict a Bitcoin breakout in October, potentially driven by the upcoming Federal Reserve meeting on September 18, where a widely anticipated interest rate cut may occur. A larger-than-expected rate cut by the Fed may strengthen investor confidence, encouraging more BTC purchases and potentially pushing its price higher.
Fed Prepares to Announce Interest Rates https://t.co/8OPFNUOqYw
— BH NEWS (@bhnewsnet) September 15, 2024
Market expectations currently lean towards a 50 basis point rate cut, which could benefit Bitcoin. The Fed’s updated dot plot and Powell’s comments after the announcement will be key for assessing future rate changes. Positive news about the Fed’s approach to rate cuts and inflation might spark bullish trends for BTC, as investors typically respond favorably to such developments.
Global Liquidity Surge Could Fuel Bitcoin’s Next Bull Rally
A rise in global liquidity could trigger the next Bitcoin bull rally. Raoul Pal, founder and CEO of Global Macro Investor, believes this will largely occur because major economies will need to refinance their debts. Moreover, Pal stated in a September 15 X video that this would lead to a global liquidity breakout across the US, Japan, China, and Europe.
He stated:
“As global liquidity rises, cryptocurrencies will rise, as will other markets like the Nasdaq… Global M2 is also starting to rise.”
Some of this increasing global liquidity might flow into Bitcoin, potentially driving the next phase of the 2024 cycle. This is due to Bitcoin’s strong correlation with the M2 money supply.
Bitcoin appears poised for a significant rally, according to TechDev, a well-known crypto analyst. He notes that Bitcoin is reflecting its 2016 cycle, during which the cryptocurrency surged from $300 to $20,000. TechDev indicates that Bitcoin has finished its ABC correction phase, a crucial technical pattern signaling the end of a downtrend.
Additionally, the Relative Strength Index (RSI) is showing signs of recovery, suggesting BTC may be gaining momentum for a potential bullish run. TechDev also noted Bitcoin’s historical behavior after halving events, highlighting that BTC often rallies following an increase in global liquidity. Based on past cycles, Bitcoin could experience significant growth in the coming months, potentially reaching $92,000.
#Bitcoin Rally Imminent? 🚀
In previous cycles, when the price retested the 50-week simple moving average 🔴, it bounced at least 40%.
On average, the bounce was 71%. If #BTC rallies 71% from here, it could reach $92,000.#cryptocurrency #DonaldTrump #Trump #ETH pic.twitter.com/1fA4o2d2kG
— Intense Value (@IntenseValue) September 13, 2024
October, known for historically strong Bitcoin returns, is anticipated to be crucial for a potential breakout. Investors are closely monitoring the market, as the recent pullback could present a key buying opportunity before Bitcoin’s value rises again. This could boost investor optimism, increase buying pressure on Bitcoin, and potentially drive up the BTC price.
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