A market analyst has posited that both the cryptocurrency and commodities markets are on the brink of a significant rally due to their current undervaluation.
Michaël van de Poppe, an analyst and entrepreneur, highlighted in a September 15 post on X that commodities are at their lowest value since the years 2000 and 1971. He expressed strong expectations for growth, stating, “Commodities & crypto are extremely undervalued and it’s likely that commodities go into a 10-year-long bull market. I’m expecting a lot of upside from these two asset classes.”
The index comparison suggests that commodities are currently valued lower than during the 2000 bubble, before the markets soared leading up to the 2008 financial crisis.
Anticipation is also building around a potential Bitcoin breakout in October, which may be spurred by the forthcoming Federal Reserve meeting on September 18, where an interest rate cut is highly anticipated.
Related: SEC crypto ‘overreach’ cost small investors $15B: John Deaton.
Global liquidity is set to surge, according to Raoul Pal, the founder and CEO of Global Macro Investor. He suggests that the need to refinance debts by major economies will trigger this increase.
Global liquidity breakout. Source: Raoul Pal. In a September 15 X video, Pal explained, “As global liquidity rises, cryptocurrencies will rise, as will other markets like the Nasdaq… Global M2 is also starting to rise.”
BTC/M2 money supply. Source: Jamie Coutts. The expanding global liquidity is expected to bolster Bitcoin, contributing to the next upward phase of the 2024 cycle. This is due to Bitcoin’s strong correlation with the M2 money supply.
Bitcoin heading for three-month historic rally as analysts eye $92,000 BTC. Following a downturn lasting over three months, Bitcoin is gearing up for a possible three-month rally.
Bitcoin recently tested a crucial support level on its weekly chart, potentially priming it for a climb above $90,000, according to Titan of Crypto.
“In previous cycles, when the price retested the 50-week simple moving average, it bounced at least 40%. On average, the bounce was 71%. If #BTC rallies 71% from here, it could reach $92,000,” noted the analyst in a September 13 X post.
