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The cryptocurrency world is currently reeling from a bearish onset of the market. With Bitcoin hitting the $56K level, several altcoins have responded to BTC’s low price pace, diluting further into the mix. However, the current scenario has yet to impact the hopeful hearts of several crypto enthusiasts. One such analytical platform has predicted a noteworthy path, detailing why the Q4 crypto pump is already brewing and is inevitably coming.
Also Read: US Economy Is Slowing Down, Showing Signs Of A Possible Decay
Three Reasons Why Q4 Is Brewing A Huge Crypto Pump
According to Empire Crypto Trading on X, there are several key reasons hinting at a potential crypto pump to sweep over the space in Q4. Some of the most popular reasons are listed below.
BRICS and Cryptocurrency
The platform noted that BRICS nations are busy building their currency systems. Once launched, the currency is bound to weaken US dollar demand, helping Bitcoin soar to new heights. The reason for this change is the direct correlation of Bitcoin with the US dollar.
“BRICS launching their own currency for cross-border trade: This will take a lot of demand from the US dollar, essentially making it weaker. Bitcoin is heavily correlated to the US dollar, meaning when the dollar comes down, BTC tends to trend up and vice versa.”
Election Years and Q4 Pump
The platform further outlined the second reason, detailing the bubbling Q4 cryptocurrency pump. Talking at length, Empire Crypto Trading reiterates how election campaigns have always had a history of delivering a stellar Q4 in the last 73 elections. With BTC closely linked with the stock market, changing governments, especially with the odds of Trump winning the elections, are fueling hopes for America to become a crypto-centric nation.
“Election year: In the last 73 election years, we have seen a Q4 pump into the stock market. Stock markets are also used as a political tool, as much as they won’t admit it. If money goes into stocks, it signals growth. Which makes the candidate look better as it makes it look like the company is growing. BTC follows SP500 and Nasdaq with up to 87% correlation.”
Hedge Against Dollar Decimation
With a new multipolar currency narrative emerging from all corners, the US dollar is consistently weakening in its course. The weak demand for the USD is helping users pivot towards gold and BTC, effectively using them as a hedge against a frail US dollar. This can in turn bolster the influx of funds into the crypto realm, capable of delivering robust Q4 crypto pump results.
Also Read: Currency: New Country Ditches The US Dollar
“As the dollar may weaken quite heavily. Gold and BTC will be looked at as stores of value by larger institutions to reduce their losses as the dollar gets weaker. Yesterday alone, we saw a $300 million inflow into the BTC ETF. While the price was making a negative market structure (accumulation).
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