"Bitcoin's Potential Bottom and Anticipation of Bull Run Amidst Changing Monetary Policy"

• The bearish environment in early August may have set a tactical bottom for Bitcoin.
• Looser monetary policy in the US could create a more favorable environment for Bitcoin.
• Fed Chair Jerome Powell's comments indicate a reversal in monetary policy is likely imminent.
• Bitcoin's price dropped nearly 5% over the past 30 days but still sees a 31% return in 2024.
• Bitcoin's sensitivity to global growth expectations is decreasing and becoming more correlated with monetary policy and the US dollar.
• US economic data this week will determine if the dollar weakens, offering a tailwind for Bitcoin.

Summary :
The recent bearish environment in the crypto markets may have actually set the stage for a potential bottom for Bitcoin. The drop in sentiment around crypto assets in August, driven by concerns over a US recession and the appreciation of the Japanese yen, quickly shifted to expectations of looser monetary policy from the Federal Reserve. If the Fed eases its policy by lowering interest rates or injecting more money into the economy, it could create a more favorable environment for Bitcoin. Fed Chair Jerome Powell's comments at a meeting in Wyoming further reinforced the anticipation of a reversal in monetary policy. The analysis suggests that this combination of factors marked a significant tactical bottom for Bitcoin and could be the start of a renewed bull run. Despite a recent drop in price, Bitcoin is still expected to see a 31% return in 2024. The analysis also indicates that concerns over a US economic slowdown are less likely to affect Bitcoin's price, as the cryptocurrency's performance is becoming more correlated with monetary policy and the performance of the US dollar.

Sources :

- CoinTelegraph
- Coindesk