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3 Reasons Why Crypto Pump In Q4 Is Inevitable
The crypto world is currently reeling from a bearish start to the market. With Bitcoin hitting the $56K mark, several altcoins have responded to the low pace of BTC prices, further diluting themselves in the mix. However, the current scenario is yet to impact the hopeful hearts of several crypto enthusiasts. One such analytics platform has predicted a noteworthy path, detailing why the Q4 crypto pump is already in full swing and is inevitably coming.
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Three Reasons Why Q4 Is Preparing for a Huge Crypto Bull Run
According to Empire Crypto Trade on X, there are several key reasons that suggest a potential crypto pump that will overwhelm 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 monetary systems. Once launched, the currency is expected to weaken demand for US dollars, helping Bitcoin reach new heights. The reason for this change is Bitcoin’s direct correlation with the US dollar.
“BRICS launch their own currency for cross-border trade: this will require a lot of demand from the US dollar, making it substantially weaker. Bitcoin is highly correlated to the US dollar, meaning when the dollar goes down, BTC tends to go up and vice versa.”
Election Years and Q4 Pumping
The platform further outlined the second reason, detailing the bubbling crypto pump in Q4. Speaking at length, Empire Crypto Trading reiterates how election campaigns have a history of stellar Q4 results over the past 73 elections. With BTC closely linked to the stock market, evolving governments, especially with Trump’s chances of winning the election, are fueling hopes of America becoming a crypto-centric nation.
“Election Year: In the last 73 election years, we have seen a pumped-up Q4 in the stock market. Stock markets are also used as a political tool, as much as they don’t admit it. If money goes into stocks, it signals growth. Which makes the candidate look better because it makes the company look like it is growing. BTC trails SP500 and Nasdaq with a correlation of up to 87%.”
Protection against dollar decimation
With a new multipolar narrative about the currency emerging from every corner, the US dollar is steadily weakening in its course. The weak demand for USD is helping users to move towards gold and BTC, effectively using them as a hedge against a fragile US dollar. This can in turn strengthen the inflow of funds into the crypto realm, capable of delivering solid crypto pump results in Q4.
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“As the dollar could weaken significantly, gold and BTC will be seen as stores of value by larger institutions to cut their losses as the dollar weakens. Just yesterday, we saw an inflow of $300 million into the BTC ETF. While the price was creating a negative market structure (accumulation).