Tether Advisor Predicts Credit Market Expansion to Fuel Next Major Bitcoin Rally

• The cryptocurrency market has been experiencing volatile activity, prompting discussions about the factors that could drive Bitcoin’s next major rally.
• Notable figures in the crypto world, including Tether’s strategic advisor Gabor Gurbacs, have shared their insights on what could potentially trigger the next upward surge for Bitcoin (BTC).
• Furthermore, well-known quant analyst PlanB has also offered his analysis on Bitcoin’s prospects, suggesting significant movements based on foundational metrics.

Discover the pivotal factors and expert opinions that could fuel Bitcoin’s next big rally, offering a detailed analysis for savvy crypto investors.

Credit Market Expansion: The Catalyst for Bitcoin’s Next Rally?

As observed by Gabor Gurbacs, Tether’s strategic advisor, the current turbulent phase for Bitcoin has not dampened the spirits of market analysts and experienced traders. Gurbacs posits that the credit market’s expansion, specifically through the involvement of major TradeFi entities, could be the next key driver for Bitcoin’s substantial price increase. He underscores the growing trend of financial institutions providing Bitcoin-backed loans as a critical component of this expansion.

Gurbacs highlights an evolving dynamic where even if traders remain hesitant about lending or borrowing Bitcoin, the emergence of spot Bitcoin ETFs has already catalyzed the growth of an institutional BTC credit market. This market is predicted to continue expanding with each new transaction. He strongly believes that this widening credit market will play an instrumental role in propelling Bitcoin’s next significant rally.

The next substantial Bitcoin rally will be driven by the broadening of the credit market. Despite some traders’ discomfort with Bitcoin lending or borrowing, the advent of ETFs has inadvertently fostered a large and growing institutional BTC credit market that evolves with every new trade.

— Gabor Gurbacs (@gaborgurbacs) July 3, 2024

PlanB’s Optimistic Outlook on Bitcoin

Renowned for popularizing the stock-to-flow (S2F) model, analyst PlanB has offered an optimistic outlook on Bitcoin’s future, emphasizing on-chain data that points to the persistence of a bull market. By examining the realized price metric, which records the value of all coins at the price they last moved on-chain, PlanB indicates that Bitcoin is positioned for a notable bounce-back.

Currently, the five-month realized price sits around $65,000, acting as a historical support line during bull markets. PlanB anticipates Bitcoin will rebound from this level, maintaining that it has seldom dipped below this benchmark in similar market conditions. He states this observation with a sense of cautious optimism, highlighting its potential impact on Bitcoin’s trajectory.

This light blue line, representing the five-month realized price, has historically served as a support during bull markets. Bitcoin rarely dips below it; instead, it tends to cling to this line. Currently, Bitcoin is slightly below this level, which is intriguing. I foresee a bounce from this five-month realized price at around $65,000… though we will have to wait and see.

– PlanB

PlanB also monitors Bitcoin’s Relative Strength Index (RSI), a widely-recognized momentum indicator used to determine overbought or oversold conditions. He predicts that during this cycle, RSI levels will reach peaks observed in the previous cycles of 2013, 2017, and 2021. According to PlanB, “I believe we will see exponential returns with RSI values exceeding 80, similar to past cycles, disproving the notion of diminishing returns. Only time will tell.”

Conclusion

In conclusion, while Bitcoin battles market volatility, industry experts like Gabor Gurbacs and PlanB provide compelling arguments for an optimistic future. Gurbacs emphasizes the role of expanding credit markets in driving the next Bitcoin rally, whereas PlanB offers a data-driven analysis forecasting a significant rebound. As the market evolves, these insights offer valuable foresight for investors and crypto enthusiasts, shedding light on potential growth catalysts and market dynamics.