In a recent strategy session shared with his 512,000 YouTube subscribers, crypto analyst Nicholas Merten issued a cautionary note about an impending bearish cycle for Bitcoin (BTC) and altcoins. Merten, the host of DataDash, attributed this somber prediction to the contracting market liquidity, a consequence of the Federal Reserve’s hawkish stance.
Merten dismissed the prevailing optimism surrounding Bitcoin’s potential to surge to new all-time highs, refuting theories that involved exchange-traded funds (ETFs), de-dollarization, BRICS, or Bitcoin bank runs. Instead, he offered a contrasting perspective, suggesting that rather than an abrupt market collapse or a precipitous drop to $15,714, the cryptocurrency market is more likely to experience a gradual and persistent decline.
The analyst’s forecast for this downturn anticipates the liquidation of numerous investors and the removal of excess capital from the system, a development that could contribute to inflationary pressures and introduce challenges to the broader economy.
Furthermore, Merten voiced apprehensions concerning wider asset markets, particularly equities, asserting that they stand at the precipice of significant transformations due to mounting macroeconomic uncertainties. At the time of his statement, Bitcoin was trading at $27,179, reflecting a 0.5% decrease over the preceding 24 hours.
Despite his bearish outlook, Merten underscored the importance of acknowledging the Federal Reserve’s role in managing the evolving situation. His remarks underscore the intricate interplay between cryptocurrency markets and the broader landscape of macroeconomic conditions and monetary policy decisions.
