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Why Bitcoin will hit $22K soon

Bitcoin Eyes $22,000 as Arthur Hayes Declares Bull Market. Pechman highlights the crucial role played by U.S. inflation, which has dropped to 3.2%.

by Isaac lane
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In the latest edition of Coinbrit’s┬áMarket Report, analyst Marcel Pechman delves into the factors propelling Bitcoin towards a potential $22,000 price point. He also examines BitMEX co-founder Arthur Hayes’s assertion that the Bitcoin bull market initiated in March.

Bitcoin’s Trajectory to $22,000

Pechman cites multiple drivers influencing Bitcoin’s upward trajectory. Investor sentiment has soured following Grayscale Investments’ much-hyped legal victory against the SEC on August 29 and its delay of several spot Bitcoin exchange-traded fund applications. Additionally, legal actions by the SEC against major crypto exchanges like Binance and Coinbase, accompanied by potential DOJ indictments for money laundering and Russian entity dealings, are raising concerns.

The Crucial Role of U.S. Inflation and the Federal Reserve

Pechman highlights the crucial role played by U.S. inflation, which has dropped to 3.2%, and the U.S. Federal Reserve’s efforts to reduce liquidity in the markets. These factors contribute to the bearish sentiment surrounding Bitcoin.

BitMEX founder Arthur Hayes contends that the Bitcoin bull market commenced in March. He attributes this to the Silicon Valley Bank’s troubles and the subsequent U.S. Treasury Department intervention.

The Complex Dynamics of the U.S. Dollar Index

Pechman acknowledges Hayes’s perspective but introduces the U.S. Dollar Index as a variable. Despite Bitcoin’s appeal, the index’s stability over the past six months suggests investor confidence that other countries would experience economic instability before the U.S. in the event of a global recession.

Ultimately, Pechman concludes that the Federal Reserve prioritizes the stability of banks, even if it triggers economic turbulence. U.S. Treasurys and the U.S. dollar continue to be perceived as safe havens in times of uncertainty.

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