INSUBCONTINENT EXCLUSIVE:
dollar and anticipated Federal Reserve interest rate cuts may trigger a broader risk-on rally, with Bitcoin as a major beneficiary
this could be just the beginning of a parabolic rally according to anonymous Bitcoin analyst apsk32
It measures price deviation from this trendline, not just in dollar terms, but in units of time, an approach known as Power Law Time
Source: apsk32/XThe analyst explained that Bitcoin is slightly more than two years ahead of its power curve, meaning if the price stayed
flat, it would take over two years for the long-term trendline to intersect it again
that a couple of macroeconomic forces could drive Bitcoin significantly higher in 2025
Bambra pointed to an expanding Federal Reserve balance sheet and a pivot toward lower interest rates, potentially under new Fed leadership
responding to the economic drag from rising tariffs, as key catalysts
Together, these shifts could ignite a broad-based rally in risk-on assets, with Bitcoin poised to benefit.Bambra cited the US Dollar Index
(DXY) dropping below 100 as a critical early signal of this macro pivot, suggesting that a wave of rate cuts and fresh stimulus may soon
crypto market entering a new supercycle? Here are 5 ways to knowSpot Bitcoin exchange-traded funds (ETFs) are gaining ground on gold,
capturing 70% of its year-to-date net inflows, according to Ecoinometrics
This strong rebound from a slow 2025 start signals growing institutional interest and confidence in Bitcoin as a legitimate store of value
Bitcoin remains a risk-on asset, with a moderate correlation to the Nasdaq 100 over the past 12 months, consistent with its five-year
Its low correlation with gold and bonds highlights its unique portfolio role
According to Timmer, the narrowing gap in Sharpe ratios between Bitcoin and gold points to BTC offering superior risk-adjusted returns
The Sharpe ratio gauges how much excess return an asset delivers for the level of risk taken, comparing its performance to a risk-free
In relative performance terms, gold stands at $20.34, while Bitcoin has climbed to $16.95.Gold vs Bitcoin Sharpe ratio convergence
Source: Jurrien Timmer/XRelated: Bitcoin $120K expectations add fuel to ETH, HYPE, UNI and SEIThis article does not contain investment
advice or recommendations
Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
