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A week ago Bitcoin was tumbling, trading at its lowest levels since the start of April. Now it’s up 12% and back over $90K as the bulls have mounted a recovery against all odds.
They are not out of the woods yet. Price structure still suggests lower before new all-time highs, but this past week’s move is exactly what the bulls needed to shift momentum and surprise the market. The macro setup is also starting to support the move.
For the past week, I have been pointing to quantitative tightening (QT) in the US coming to an end. In simple terms, the Federal Reserve is winding down its contractionary monetary policy, which had been reducing liquidity and money supply. That setup tends to weigh heavily on Bitcoin.
Now with QT ending on December 1, the door is open for the next phase of the cycle: quantitative easing (QE). QE means money printing and Bitcoin thrives on rising liquidity. It will not start immediately after QT ends, but the pivot itself is a key signal.
Add to that the growing expectation of interest rate cuts, which are bullish for Bitcoin and other risk-on assets. Over the past week, both risk-on and risk-off assets have seen strong recoveries. US indices are close to new all-time highs and overnight silver broke through its previous high, up nearly 6% as macro tailwinds strengthen.
Bitcoin may seem like it is lagging, but it is still up more than 12% in a week and has room to run. The bears are still in control of the broader market structure, but the bulls are fighting back.
Stormrake Spotlight: Pax Gold (PAXG) ($4,237)
Stormrake Spotlight: Pax Gold (PAXG) ($4,237)
