Giovanni Russo Since the beginning of the year, Bitcoin (BTC), the premier digital currency in terms of market capitalization, has experienced an astonishing rise of over 100%. This has led to intensified interest in the sustainability of its bullish trend. In a recent Thursday conversation with Gareth Soloway, the principal market analyst at inthemoneystocks.com, the specialist explored the potential durability of Bitcoin’s current surge. Additionally, he discussed the forthcoming Federal Reserve assembly and the 10-year treasury yields reaching their highest level in 16 years.
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Market Analyst Gareth Soloway Scrutinizes Bitcoin’s Longevity; Foresees a Surge in Gold Prices
On a Thursday characterized by declining U.S. stock markets, precious metals and cryptocurrency markets displayed resilience. Gareth Soloway, the chief market analyst at inthemoneystocks.com, conducted an exhaustive dialogue on the U.S. and global economic landscapes with Michelle Makori, the top anchor and editor-in-chief of Kitco News.
In the course of their conversation, Soloway identified the U.S. Federal Reserve as the epicenter of market attention, conjecturing whether the institution will decide to raise the federal funds rate. He highlighted the significant milestone of 10-year treasury yields soaring beyond 5% for the first time in 16 years.
To underscore its importance, Soloway noted that a 5% yield on the 10-year treasury is “extremely pivotal for market psychology.” Aligning with Bill Gross’ earlier predictions, he expects a possible economic recession by the last quarter of this year, calling attention to the marked disparities in consumer confidence across various income levels.
Soloway opined, “Assessing the current economic landscape, one could argue that half of the population is already in recession.” He also shared insights on the upcoming Federal Open Market Committee (FOMC) meeting, suggesting the Federal Reserve may decide to suspend further rate hikes in light of manifest market pressures.
Observing these market strains, the analyst commented, “The stress that has manifested in the financial markets is clearly visible.”
Turning his attention to Bitcoin (BTC), Soloway discussed the likely authorization of a spot Bitcoin exchange-traded fund (ETF), warning that it could initiate a significant sell-off. While recognizing Bitcoin’s remarkable ascent, he expressed reservations about its capability to withstand a possible 15-20% asset liquidation in the Nasdaq. He raised concerns that a drastic 35% drop in stock markets could instigate widespread fear among Bitcoin investors. Soloway asserted:
Approval for an ETF may materialize by the end of this year or early 2024. If Bitcoin maintains its current levels, additional growth may not be forthcoming. It may have already priced in the ETF approval, potentially leading to a sell-off upon the news.
Looking forward, Soloway contemplated potential narratives that could influence Bitcoin’s price following ETF approval. He noted the rising institutional acceptance of BTC as a legitimate asset class, drawing parallels with gold. In the face of future volatility in stock markets, he anticipates an increased appetite for Bitcoin, predicting that its next resistance level could be around $47,000 per unit.
Soloway added, “Many institutional investors in these ETFs have likely been accumulating Bitcoin for the past few months, anticipating eventual approval. Thus, demand for the spot ETF may not be as robust.”
However, he did not rule out the possibility that Bitcoin could sharply decline to the $15,000 range, particularly if stock markets tumble and panic sets in broadly. “Panic is the most potent emotion. Under such a scenario, a significant downturn in Bitcoin’s price remains plausible,” Soloway informed Makori. He is also closely watching gold, expressing a bullish outlook for its potential to reach between $2,400 and $2,500 by 2024.
What are your perspectives on Soloway’s forecasts? Please share your thoughts and viewpoints on this topic in the comments section below.
Frequently Asked Questions (FAQs) about Bitcoin’s Longevity
What is the main focus of Gareth Soloway’s market analysis?
The primary focus of Gareth Soloway’s market analysis is to explore the sustainability of Bitcoin’s bullish trend amidst rising 10-year U.S. Treasury yields and the speculation around Bitcoin ETFs. He also provides insights into Federal Reserve policies and forecasts for the gold market.
What does Gareth Soloway say about the 10-year treasury yields?
Gareth Soloway notes that the 10-year treasury yields have reached a significant milestone, soaring past 5% for the first time in 16 years. He emphasizes that this development is extremely pivotal for the psychology of the financial markets.
Does Soloway anticipate any changes from the Federal Reserve?
Soloway identifies the Federal Reserve as the current focal point of market attention and speculates that the institution might opt to suspend further rate hikes due to evident market stress. He anticipates the possibility of an economic recession by the last quarter of the year.
What are Soloway’s predictions for Bitcoin?
Soloway speculates that a spot Bitcoin ETF is likely to receive approval by the end of this year or early in 2024. However, he cautions that this could trigger a significant sell-off. He also raises concerns about Bitcoin’s resilience against a 15-20% asset liquidation in the Nasdaq.
What does Soloway think about gold prices?
Gareth Soloway expresses a bullish outlook for gold, predicting its potential to reach between $2,400 and $2,500 by 2024. He sees gold as a possible refuge in times of market volatility and as a legitimate asset class alongside Bitcoin.
What are Soloway’s comments on market psychology?
Soloway emphasizes the importance of a 5% yield on the 10-year treasury for market psychology. He suggests that different income brackets are experiencing varying levels of consumer confidence and that half the population could already be in a recession.
Does Soloway discuss any other economic indicators?
Yes, Soloway delves into the possibility of an economic downturn and highlights the stark contrast in consumer confidence across different income levels. He suggests that the Federal Reserve may opt to halt its rate hikes, given the evident market stress.
More about Bitcoin’s Longevity
- Gareth Soloway’s Market Analysis
- inthemoneystocks.com
- Kitco News
- Federal Reserve Policies
- 10-Year U.S. Treasury Yields
- Bitcoin ETF Speculation
- Gold Price Forecasts
- Market Psychology and Economic Indicators
7 comments
Can someone explain why a Bitcoin ETF approval could actually lead to a selloff? I mean, wouldn’t that news be positive? Kinda confusing.
Wow, this is some deep analysis by Soloway. Never thought bout how treasury yields and Bitcoin could be so connected. Food for thought, for sure!
I’m a bit skeptical about Soloway’s gold predictions. But if he’s right, could be a big deal for long term investments. Still, diversify, diversify, right?
Man, when he talks about market psychology, it really hits home. Market’s are unpredictable these days. A 5% yield means different things to different people.
Soloway’s a smart guy but i still don’t get why we should be concerned about the federal reserve stopping rate hikes. is that not a good thing for the market?
This makes me think twice about putting all my eggs in the Bitcoin basket. That part about the possible Nasdaq sell-off and how it can impact BTC, kinda scary.
Interesting stuff. especially how Soloway links Fed decisions to the crypto market. it’s like everything’s connected in the financial world these days.