Recent market analysis suggests Bitcoin (BTC) is poised for significant gains, potentially reaching new all-time highs by mid-2025. Analyst Donny points to a confluence of technical and macroeconomic factors.
Bitcoin's Structural Setup and Liquidity
Donny notes that the current Bitcoin price action demonstrates a classic re-accumulation phase. After dipping below a critical level that flushed retail participants, Bitcoin is attempting to establish a new higher low around $73.6K, referred to as the 'BlackRock Accumulation' zone. A breakout above $95K would confirm the end of the accumulation phase and initiate a new price discovery phase.
Macroeconomic Trends and Liquidity
The analysis highlights the inverse relationship between the U.S. Dollar Index (DXY) and global liquidity. Following a peak in February 2023, a decline in the DXY is expected to coincide with an increase in global M2 money supply, creating favorable conditions for risk assets like Bitcoin. Changes in bond yields also suggest an impending transition in Federal Reserve policy.
Market Sentiment and Bitcoin's Potential
Market sentiment remains subdued, presenting opportunities for sharp reversals. Donny emphasizes that Bitcoin does not require SPX to lead for its growth. With sufficient liquidity and positive macro signals, Bitcoin may begin a new rally, further supported by its current technical setup.
In summary, with improving liquidity conditions and potential changes in Fed policy, Donny's predictions for new Bitcoin highs by mid-2025 appear increasingly plausible. Bitcoin may once again emerge as the leader in the asset market.
