In November 2022, investors who navigated through the period of extreme fear and purchased during market lows have begun to see the rewards of their strategies. Despite this, a robust upward movement consistent with a true bull market is yet to emerge. Many investors are eagerly anticipating a period akin to 2021, although some experts suggest this may not materialize. Veteran investors remain unpersuaded by the pessimism due to past experiences. The key factors to watch are global liquidity trends and the M2 money supply.
Crypto Bull Market
Global liquidity and M2 money supply are on the rise, even reaching new all-time highs. China has been actively injecting liquidity into markets, and the European Union continues with interest rate cuts. Numerous countries have lowered their rates to near-historic lows.
However, the Federal Reserve has yet to align its current interest rate with inflation. Despite a halt in the decline of inflation, largely attributed to tariffs causing market uncertainty over the past six months, the feared severe impacts of tariffs on inflation have not been observed. Thus, while global liquidity and M2 are expanding, many anticipate that the Federal Reserve will need to begin reducing interest rates for a full-fledged crypto bull market.
Quinten shared a graph today illustrating how global liquidity and money supply have reached unprecedented levels.
Expectations in Altcoins
Altcoins are experiencing a 1-2% decrease today. Amid the drafting of the report, Putin mentioned potential economic cooperation with the USA, while the Ukraine conflict seems to be nearing its end. A deal with Iran has been signed, and it has been two days since a trade agreement with China was completed. Consequently, the anticipated period should commence.
An analyst known as Sherpa shared insights on SEI Coin.
“I watched last night but didn’t buy SEI; I remain largely offline. My trading idea was to enter and exit at 50% from the 0.50 fib level and 50% from the 0.618 fib level, but being AFK, I couldn’t execute it. Enjoy your weekend.”
Jelle now believes that the BTC surge should commence.
“The weekly candle appears strong.
One more trading day and weekend remain.
Current state:
– Trend breakout
– Retest
– Lows broken
– Candle signaling an ascent
What’s next? A rise.”
