Nansen Forecast For Bitcoin Bull Run: Regulatory Clarity And Lower Inflation

Samuel Edyme

1 year ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

The dynamics of the crypto market never cease to enthrall, with bullish rallies and bearish downturns coloring the landscape. Yet, deciphering the key factors to ignite the next Bitcoin (BTC) bull run is no easy task. However, Nansen, a leading cryptocurrency analytics firm, recently voiced its perspective on this subject.

In a report published on June 20, the firm puts forth two fundamental prerequisites for the next surge in Bitcoin’s value. It insists on the importance of clear United States regulations around cryptocurrency, and a demonstration that core inflation is on a downward trajectory.

Regulatory Clarity And Inflation: Catalysts For The Next Bull Run?

According to Nansen, US regulatory clarity could be a significant determining factor in the next bull cycle. This perspective comes amid the ongoing regulatory tensions with major crypto exchanges like Coinbase and Binance.

Despite the uncertainties, Bitcoin, the world’s largest cryptocurrency by market capitalization, has held not so badly, showing a commendable rise of more than 10% over the past week.

Additionally, Nansen’s research points to the vital role of inflation. According to the crypto analytics firm, the potential for a recession appears to be receding, while persistent inflation continues to surprise.

While this situation is leading to complex impacts, with non-Asian monetary policies staying tighter for extended periods, this scenario also poses increased challenges for risk assets.

Nansen reported:

The scenario of a recession is being pushed back, and inflation is surprising by its ‘stubbornness.’ This creates non-linear effects, whereby monetary policy (outside of Asia) remains more restrictive for longer and in turn becomes an increasing headwind for risk assets.

Bitcoin Price Action: Strength Amid Uncertainty

Despite these economic and regulatory headwinds, Bitcoin’s price has exhibited resilience. At the time of the writing, BTC traded at $28,925, a more than 11% increase from its previous plummeted price below $25,000 in the past few weeks.

Bitcoin (BTC)’s price chart on TradingView — Bitcoin (BTC)’s price moving sideways on the 4-hour chart. Source: BTC/USD on TradingView.com

Notably, over the past 7 days, Bitcoin’s total market capitalization experienced a boost of 11.6%, amounting to an additional $50 billion. The market capitalization of Bitcoin presently hovers at $561 billion, an increase from last Wednesday’s $503 billion.

Bitcoin’s daily trading volume has also surged from a low of around $7 billion last week to as high as above $20 billion in the past 24 hours. Furthermore, there’s been a decrease in crypto-implied volatility, suggesting that much of the regulatory and macroeconomic bad news might already be factored into Bitcoin’s price.

According to Nansen, shallow sell-offs indicate that the market is absorbing the selling pressure well, which is a positive sign for the overall market strength.

The analytics firm noted:

Shallow BTC sell-offs and ongoing decrease in crypto implied volatility tell us that a lot of regulatory and macro bad news are already priced in.

Featured image from Shutterstock, Chart from TradingView

Samuel Edyme

Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.