BTC Bear Market Exit Imminent: Two Conditions Met

Bitcoin (BTC) may be on the cusp of exiting its bear market, according to Bitfinex's Alpha report. The report states that two out of three conditions for a successful rally have been met, including lower expected rates and already-loose financial conditions.

The inflation rate has dropped from 3.50% in June to 3.40% in July, partly due to decreased energy prices. This may lead the Federal Reserve to refrain from raising interest rates in the coming weeks.

However, a separate source of supply-driven inflation has been introduced by tech-focused hardware and artificial intelligence (AI) infrastructure. Despite this new capital flow, it has not yet entered the crypto market.

The report claims that if this capital can enter the crypto ecosystem, a price surge for BTC will naturally follow. This is the third condition to be met for a smooth rally.