Bitcoin surges above 61,000! The bull market is far from over and may accelerate in the coming months

On Wednesday (August 21), Bitcoin surpassed the $61,000 mark. Traders are anxiously awaiting comments on interest rates from Federal Reserve Chairman Jerome Powell on Friday. Market observers are closely watching for any hints of a possible 50 basis point rate cut, as the Federal Reserve released the latest meeting minutes and the U.S. non-farm payroll data was significantly revised downwards, with a 100% likelihood of a 25 basis point rate cut in September.

As of this writing, Bitcoin is trading at $61,000.14 per coin.

Wednesday's Federal Reserve meeting minutes showed that Fed officials were strongly inclined to cut rates at the September policy meeting. Earlier data showed that the U.S. Department of Labor revised the employment data for the 12 months ending in March 2024, reducing the previously reported increase in jobs by 818,000 from the original 2.9 million. This is the largest preliminary downward revision since the global financial crisis, indicating that the labor market's weakness may be more pronounced than previously thought.

Given the recent price volatility of Bitcoin, many are questioning whether the bull market has ended. However, historical data suggests otherwise. Since the halving began, the market is currently testing the support level of the "fair value range" for the second time. This pattern mirrors the cycles of 2016 and 2020, when Bitcoin also consolidated before a major breakout. It's premature to declare the bull market over. Historically, price surges usually occur around 160 days after the halving.

The Bitcoin bull market is far from over for the following reasons:

Whale accumulation and global liquidity indicate strength

Institutional investors, especially Bitcoin whales, are signaling confidence. In just the past six weeks, wallets holding between 100 and 1,000 Bitcoins have accumulated an additional 100,000 Bitcoins. This accumulation is happening as Bitcoin consolidates around its fair value, suggesting that large investors are preparing for future gains. Moreover, global liquidity is rising, which has historically been a precursor to significant Bitcoin price movements. This pattern of liquidity driving price increases has been observed before, and the current trend indicates that a major price surge may be imminent.

Institutional adoption and a weakening dollar: Key drivers for the future

In addition to individual whale activity, institutional adoption is also accelerating. Currently, 60% of the largest hedge funds in the U.S. hold Bitcoin, further cementing its role in traditional finance. Companies like MicroStrategy have shifted strategies to hold Bitcoin as treasury assets, achieving exponential growth since 2021. Additionally, the U.S. dollar is another key factor to watch. Historically, when the dollar weakens, Bitcoin prices soar, and the current dollar index shows signs of potential collapse. Coupled with increased adoption by institutions and retail investors, this suggests that the Bitcoin bull market is not only intact but may accelerate in the coming months.