Bitcoin might hit 30k this week; here is why 💥

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🚩 In 10 bullet points:

👇 1) While Treasury Secretary Yellen initially said that a ‘blanket insurance’ for all U.S. banks is currently not discussed, she said the government is ready to provide more help to depositors if necessary. So while (regional) banks and their shareholders might suffer, the depositors will not, which is very bullish for risk assets.

Members of our Telegram group (DeFi on Target) got this timely update to buy Bitcoin at 20,290 on March 11 2013 !!!

👇 2) More and more traders realize that the Fed is likely done with hiking interest rates for this cycle. Bond markets are pricing in that we might see an (emergency) cut. If this happens, Bitcoin could immediately jump by +10%.

👇 3) We also think crypto will now see favorable tailwinds from more robust (U.S.) stock markets. While we have preferred Bitcoin > SP500 and expected an enormous outperformance, which is materializing, stocks are barely up YtD – but we think this will change now.

👇 4) We might have seen the SP500 for the last time this year below 4,000 (futures) – having successfully re-tested the 200-day moving average, stocks are now set to rally too potentially.

👇 5) There is zero chance in our view that inflation is a concern this year. This was our big thesis on why we turned super bullish crypto in December, and the data keeps confirming our view. Inflation worries have been replaced with banking crisis risk – which has always been deflationary.

👇 6) While the correlation between tech stocks and the broader market has been high, the correlation has started to break down this month as tech is outperforming. The market finally realizes that inflation is not a problem, and this tech outperformance is also a tailwind for Bitcoin.

👇 7) The cyclical tech stocks have also outperformed the defensive utility stocks by almost 20% since December; the market fundamentals are changing – and they are switching to the bullish side.

👇 8) This is also expressed in the bullish steepening that the bond market is signaling, and historically, those trends have lasted for many months. Hence, we might be early with these observations, and the stronger bull trend could lift higher cyclical assets (tech + crypto).

👇 9) The Ethereum Shanghai upgrade is expected to go live on April 12, two weeks away. There you even have a crypto catalyst waiting in the wings.

👇 10) As the quarter end is approaching this week, fund managers likely want to show that they own the ‘right’ stocks when they sent out their statements next month. That’s why they have to buy tech stocks this week. Bitcoin could break 30,000 this week.

Agree? Disagree? How are you positioned?

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