The cryptocurrency market is in a rush due to strong macroeconomic conditions. Notably, the Bitcoin price has lost over 60% since the November 2021 high. In contrast, big names like Morgan Stanley are expecting over 15% rallies.
Michael van de Poppe expects activity in Bitcoin in 1-2 weeks
Michael van de Poppe, CEO of Eight Global and a well-known crypto analyst, reveals that BTC should clearly break $19.4k – $19.6k. The analyst believes that breaking this level could initiate a massive Bitcoin rally. Poppe also appreciates the current structure and yields of the US dollar. Accordingly, he expects the rally to take place in 1-2 weeks.
Why is Bitcoin price lacking bullishness?
The crypto market depends on the macroeconomic features that govern the price action. Coinbase Research believes that the crypto market is currently strongly correlated with more classical markets. Because of this, the movement in the stock market also shows itself in the crypto market.
On the other hand, the Fed applies restrictive monetary policy to curb inflation levels in the US. Other central banks, such as the European Central Bank and the Bank of England, also have similar practices.
Morgan Stanley’s Michael J. Wilson expects a short-term rally
Morgan Stanley’s CIO and bear market expert Michael J. Wilson, in his new analysis, hypothesized that the US stock market could witness a short-term rally of 16%. According to the news of Bloomberg on October 17, while the S&P 500 is testing the 200-week moving average (WMA), it expects a short-term recovery in the US stock market.
In the middle, Bitcoin (BTC) price continues to struggle below $20,000 with the 200-WMA near the $23,000 level. However, there have been several bear market rallies since the BTC price dropped below $20,000 in June. But the bulls couldn’t hold back and the bears took over. Koindeks.comAs you follow, it forced the Bitcoin price to fall below $20,000 again.
Also, Bitcoin price has failed to break past the 200-WMA since the short-term spike in August. Michael J. Wilson’s most obvious downside claim was that he actually predicted the fall at the start of the year. Wilson now projects a 16% increase from current levels, despite defending the overall negative long-term stance on the stock market:
While this looks like a huge move, it will be in line with bear market rallies this year and before.
That’s in the middle, the next Fed FOMC meeting, which could drive the market for the next few months, is on November 2. As calm horrors continue to mount, the Fed maintains its hawkish stance to curb inflation.