Next bitcoin bull run will require US clarity, lower inflation: Nansen

Quick Take

  • The next crypto bull cycle will need U.S. regulatory clarity and lower inflation, according to a Nansen researcher. 

The next cryptocurrency bull market will need regularity clarity in the U.S. and proof that core inflation is moving lower, according to the crypto analytics firm Nansen

"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," it wrote on Twitter, referencing a report by Nansen research analyst Aurelie Barthere. 

"The scenario of a recession is being pushed back and inflation is surprising by its 'stubbornness," it continued. "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."

Despite talk of U.S. regulatory uncertainty in the wake of lawsuits filed against crypto exchanges Coinbase and Binance by the Securities and Exchange Commission last month, bitcoin has been a solid performer. The price of the largest crypto by market capitalization is up 66.5% over the past six months and is currently trading at $28,023, according to TradingView

 

 


Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

MK Manoylov has been a reporter for The Block since 2020 — joining just before bitcoin surpassed $20,000 for the first time. Since then, MK has written nearly 1,000 articles for the publication, covering any and all crypto news but with a penchant toward NFT, metaverse, web3 gaming, funding, crime, hack and crypto ecosystem stories. MK holds a graduate degree from New York University's Science, Health and Environmental Reporting Program (SHERP) and has also covered health topics for WebMD and Insider. You can follow MK on X @MManoylov and on LinkedIn.

Editor

To contact the editor of this story:
Nathan Crooks at
[email protected]