Analyst Predicts Bitcoin Surge After Current Degrossing Phase
Macro strategist Felix Jauvin discusses Bitcoin's potential recovery post-deleveraging in a recent thread. He argues that the current forced deleveraging is a precursor to a significant trading opportunity for BTC.
Key Points from Jauvin's Analysis
- Bitcoin's value primarily correlates with global liquidity rather than US equities.
- The US fiscal deficit has been significantly higher compared to other countries, leading to inflation and increased corporate revenues.
- Jauvin anticipates a shift in capital flows due to changes in US trade policies, particularly under the Trump administration, which aims to reduce trade deficits.
- A weaker dollar and stronger foreign currencies may result from foreign central banks increasing rates.
- The current market turmoil indicates a necessary adjustment of crowded positions, affecting US dollar assets.
- Jauvin sees potential for Bitcoin to decouple from US tech equities as foreign fiscal stimulus becomes more prominent.
- He predicts that once the deleveraging phase concludes, Bitcoin will emerge as a strong asset reflecting global liquidity.
At press time, Bitcoin is priced at $84,766.
