Cryptocurrency analysts anticipate increased volatility in the market over the next month or two, followed by a potential rally in the fourth quarter. This expectation arises from supply overhangs caused by indiscriminate selling of Bitcoin, including by entities such as the German government’s Bundeskriminalamt (BKA) and the impact of Mt. Gox.
The analysts caution that this uncertainty could have a more damaging effect than the actual selling, predicting choppy price action in the third quarter due to the lack of strong narratives in the crypto markets. Despite the market’s uncertainty regarding the impact of ETH ETFs flows, analysts Duong and Han believe that the outlook is unlikely to be negative from a positioning perspective. They suggest that this could lead to surprise outperformance and offer more support to ETH, even if the flows take time to materialize.
Additionally, they highlight that fiscal expansion, irrespective of the election outcome, could position Bitcoin as a strong buy at current levels, especially as an alternative to traditional finance.
