Bitcoin’s cycles are changing — Bloomberg analyst Jamie Coutts explains how and why

In the lat­est episode of Cointelegraph’s Mar­ket Talks, host Ray Salmond speaks with Jamie Coutts, a char­tered mar­ket tech­ni­cian and cryp­to mar­ket ana­lyst at Bloomberg Intelligence. 

When asked whether Bitcoin’s (BTC) pre- and post-halv­ing price action could dif­fer from pre­vi­ous cycles due to a change in glob­al mon­e­tary pol­i­cy, Coutts said: 

“I’ve been writ­ing about this for most of the year. We do have some strong fun­da­men­tals in the space, but ulti­mate­ly, what dri­ves risk assets is liq­uid­i­ty. The longer that we have this tight­en­ing cycle, and if we start to see an uptick in unem­ploy­ment and more stress in the bank­ing sec­tor, then there could be a bit more pain for risk assets like Bitcoin.” 

Relat­ed: The future of BTC min­ing and the Bit­coin halving

Despite the dim macro­eco­nom­ic out­look, Coutts did suggest: 

“We could be near the end. There is still a lot of under­ly­ing stress in the U.S. bank­ing sys­tem and oth­er areas of the econ­o­my. I think this is some­what dif­fer­ent to any oth­er Bit­coin cycle that we’ve seen, but ulti­mate­ly, peo­ple will need to keep in mind that we are liv­ing in a fiat and cred­it-mon­ey-based mon­ey sys­tem, and inevitably, there will need to be a return to some form of eas­ing because essen­tial­ly the sys­tem can­not han­dle long peri­ods of defla­tion. So, it is still Bit­coin, and to some degree, cryp­to assets that have con­trol of their infla­tion sched­ules that will do well when things start to resume.” 

To hear more about Coutt’s views on the macro, Bit­coin, Ethereum, alt­coins and sta­ble­coins, tune in to the full episode of Mar­ket Talks on the new Coin­tele­graph Mar­kets & Research YouTube chan­nel. Also, don’t for­get to click “Like” and “Sub­scribe” to keep up-to-date with all our lat­est content.