It has been just revealed the fact that there is a massive amount of cash waiting to enter the crypto space soon. Check out the latest reports below.
Fresh capital to enter the crypto space
An analyst known as Pentoshi, who accurately predicted the end of Bitcoin’s bull market in 2021, is now predicting a potential surge in the future.
Pentoshi notes that there appears to be a decrease in capital flowing into the cryptocurrency market. However, the analyst anticipates a change in market conditions leading up to Bitcoin’s next halving event in the coming months.
Pentoshi regularly monitors stablecoin market caps and total value locked (TVL), which have both been decreasing along with the majority of altcoins.
But the analyst believes that new money will flow into the market soon, and predicts that Bitcoin could experience a significant uptick around Q1 2024.
Pentoshi attributes the current stability to Michael Saylor, Tether, and ETFs, noting that without them, Bitcoin’s value could have fallen below $20,000.
The next Bitcoin halving is slated for April 2024.
The trader has a negative outlook on BTC due to two major factors. Pentoshi believes that the recent increase in oil markets suggests that inflation will become a problem again.
Additionally, Pentoshi predicts that regulators will delay approving a spot-based Bitcoin ETF.
However, Pentoshi believes that once the correction from these factors occurs, BTC could experience a significant rally once regulators approve the Bitcoin ETF.
Pentoshi thinks that a dump and pump scenario is possible following the ETF delay and hot CPI print. This analysis is based on paying close attention to the market rather than hope.
Pentoshi points out that energy prices have risen by 24% in the last six weeks, which could contribute to an increase in everything else.
Pentoshi thinks that the hot CPI print will occur either this month or next, and the Fed is showing signs of a hot print as well.
