Su Zhu, CEO of crypto hedge fund Three Arrows Capital, highlighted three potential catalysts that could trigger a new Bitcoin (BTC) bull market.
The crypto billionaire first explained why he believes Bitcoin has entered an accumulation range and that the downtrend will not continue any longer. suggested.
According to Zhu, this is the first time in its history that Bitcoin has traded so many times in a row (seven weeks) in a row, indicating that sellers are exhausted. As another factor, the crypto hedge fund manager pointed to the huge trading volume that took place during the collapse of TerraUSD (UST), which could signal the start of a trend reversal.
According to Zhu, the third sign that BTC is in a re-accumulation phase is BTC showing unusual strength against the stock markets during the night. Over the past week, the S&P500 has dropped 4.5% while BTC has risen about 1%.
The fourth signal that caught Zhu’s attention is the Mayer Multiple, an indicator that measures Bitcoin’s current price against its 200-day moving average. Zhu claims that BTC is undervalued, noting that the Mayer Multiple is hovering at historic lows.
Alongside these, the crypto billionaire also revealed three possible catalysts that could trigger the next bull market for BTC.
“1) El Salvador conference of 44 central banks
2) Use of OPEC in international payments
3) commodity nation sovereign wealth to execute theses-driven allocations.”
In his first catalyst, Zhu cites a meeting held in El Salvador, which was attended by officials from 44 different countries discussing Bitcoin. In the second, it refers to the possibility of the Organization of Petroleum Exporting Countries (OPEC) accepting crypto payments for oil purchases. The third catalyst refers to the possibility of sovereign wealth funds allocating funds to Bitcoin from commodity-centric countries.
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.