Source: dailyhodl.com
A top executive from digital asset manager CoinShares says one catalyst has the potential to trigger a bullish turnaround for Bitcoin (BTC) and crypto markets.
In a new interview with Scott Melker, CoinShares’ head of research James Butterfill says the US dollar is likely overvalued, and that a shift in trend for the USD could spark a reversal in risk assets like Bitcoin.
Butterfill says if the Federal Reserve pivots from its hawkish stance, the dollar could finally weaken and trigger a bull run for the Bitcoin.
“I spent a long time looking at positioning in the dollar and the DXY [US Dollar Index]. We know… it’s very high. I think it’s mid-1980s high. There’s certain other valuation metrics you can look at. You can look at sentiment or CFTC [Commodity Futures Trading Commission] futures positioning and that is elevating, highlighting quite elevated long position for the dollar.
If you look at something called purchasing power parity [PPP], that’s the highest it’s been since 1985…
So we know the dollar is very overvalued. So when the Fed does pivot, the trade-weighted dollar could really flip quite quickly and quite sharply, and that would be quite supportive for something like Bitcoin.”
Butterfill says the price of Bitcoin probably doesn’t have much further to drop, making BTC’s current price tag a rare opportunity for bulls.
“I think now is an interesting entry position. Because I don’t think there’s a huge floor in prices. You might have to wait three to six months for a measurable price increase, but there aren’t that many opportunities that come along when Bitcoin is on sale like it is right now.”
As of writing, Bitcoin is changing hands at $19,204.67.
O
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Eugenia Porechenskaya
Read More at dailyhodl.com