natoil42.eth
@natoil42
These four charts show why you should be bullish on Bitcoin and cryptocurrencies in the short/medium term Look at them and compare them carefully - I will comment on each one in this thread! 👇
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natoil42.eth
@natoil42
[🧵2/5] Strong correlation between total (private & public sector) global liquidity (GMI weekly index) vs Bitcoin Price. Rate cuts bring more liquidity into markets, encouraging investors to seek higher returns in a low interest rate environment, pushing them toward more volatile assets such as cryptocurrencies. [src: GMI]
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natoil42.eth
@natoil42
[🧵3/5] The weakness of the US$ dollar (DXY index) has historically been a key driver for the price of BTC, as Bitcoin becomes cheaper for foreign countries trading in USD and stablecoins that use it as underlying (USDT, USDC, and the like), attracting more capitals and increasing the crypto market cap.
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natoil42.eth
@natoil42
[🧵4/5] Recent news, FTX has received approval to repay customers from U.S. Bankruptcy Judge John Dorsey, who signed off on a plan to distribute at least $12.6B, a figure that could increase to as much as $16.5B after all platform assets are sold. This is liquidity that will flow directly into the crypto market, back into the hands of crypto investors.
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natoil42.eth
@natoil42
[🧵5/5] By fitting the DXY and S&P500 indices into a regression model, a fair price for Bitcoin can be estimated by referring to recent similar historical contexts. This shows that BTC$ is actually undervalued by 15%-50%.
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