New research from CryptoQuant indicates that Bitcoin is nearing the end of its market consolidation phase. Increased demand and stable price action despite a surge in transfer volume suggest that investors are viewing the current price range as an attractive entry point, potentially setting the stage for a bullish breakout.
Standard Chartered’s top crypto analyst, Geoffrey Kendrick, forecasts a bullish future for Bitcoin and Ether, with Bitcoin expected to surge to $150,000 and Ether reaching $8,000 by the end of 2024. Kendrick believes that the negative market sentiment has been factored in and that positive factors will prevail, driving the prices higher. The supply shock from the Bitcoin halving and the introduction of new Bitcoin ETFs are seen as key contributors to this growth. Despite recent setbacks, such as the military conflict between Iran and Israel, Kendrick remains optimistic about Bitcoin’s potential to reach new highs.
Despite the recently executed Bitcoin halving event, market response has been subdued, with Bitcoin holding steady within a narrow range. Nonetheless, factors such as limited supply, growing demand from Bitcoin ETFs, and a rise in long-term holders suggest a positive outlook. Identifying key support levels is crucial to sustain the uptrend. Meanwhile, Ethereum’s correction poses questions about the extent of the decline.
Despite the potential for Fed rate cuts, which could lower dividends for most CLO ETFs, the author remains bullish on these funds for three reasons: their strong current yields, their expected strong yields for the next two years as per Fed guidance, and their low risk profile with little credit or interest rate risk. The author also provides a brief overview of CLOs and explains the three CLO ETF types: AAA-rated (JAAA), BBB-rated (JBBB), and BBB and BB-rated (CLOZ).
