Bitcoin's Weekly Chart Flips Bullish Amid GENIUS Act and Fed Rate Hike
Bitcoin's weekly chart has turned bullish, according to James E. Thorne, Chief Market Strategist at Wellington-Altus. He points to the 30-week and 40-week moving averages, which have flipped from down to up since the June low. This setup is a 'Super Cycle,' Thorne says.
The price of Bitcoin has held support at the 200-week average, keeping the long-term uptrend intact. Thorne links this to the GENIUS Act, tokenization, and the Federal Reserve's rate hike as a 'policy mistake.'
The market is changing, with tokenized Treasuries, on-chain settlement, and regulated stablecoins moving Bitcoin and other digital currencies into the financial system. This is a different bid than the last cycle, Thorne says.
Thorne also notes that the calendar is in the strongest part of the four-year presidential cycle, historically seeing the best equity returns. The macroeconomic backdrop is improving, with productivity growth, wage growth, and manufacturing job growth.
However, the Federal Reserve's rate hike is seen as a policy mistake. Thorne says markets are already discounting the hike, and the price has held the long-term average.