Bitcoin BTC/USD may not have the necessary momentum to continue its uptrend.
This is the opinion of a famous cryptocurrency analyst who believes that people will make money with the help of high cryptocurrencies.
What Happened : Nicholas Merten also highlighted his connection to money supply dynamics on his YouTube channel.
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His comments come at an important time in the cryptocurrency world, as many investors eagerly await the next big step in the development of the leading digital currency.
The analyst's view aligns with discussions at Benzinga's Future of Digital Assets conference on November 14, where industry leaders will examine the complex relationship between global financial systems and the emerging world of cryptocurrencies.
“We can’t sit here and say Bitcoin is a hedge against a decline in the money supply… and then just ignore it when [the money supply] shrinks,” the expert noted.
Why it matters : Bitcoin serves as a hedge against currency devaluations, meaning the more money is printed, the higher its value, Merten explained.
During times of monetary contraction, the value of Bitcoin will inevitably face challenges and may decline.
“Liquidity is the lifeline, the lifeblood of all financial assets that must continue to increase in value,” he said.
The analyst highlighted the current market dynamics and pointed out potential risks for investors buying Bitcoin in the $25,000 to $32,000 range.
“When everyone who has been buying in the market over the last few months realizes that there isn’t really enough momentum to break out above the previous support area,” he warns, “people will start cashing out.”
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