Bitcoin Expert Jan Wüstenfeld Answers BTC ECHO Questions at BTC22: Was He Down? And when will the bull market return? That and much more in the interview.
The Bochum economist has quickly become one of the most sought-after on-chain analysts in the Bitcoin sector. In his newsletter “Bitcoin Market Intelligence” he puts the current Bitcoin market environment in a macroeconomic context.
We spoke to analysts at BTC22, the largest German-speaking Bitcoin conference, about inflation, rising interest rates and the start of a possible bull run.
BTC-ECHO: The bear market has been keeping investors in suspense for almost a year. Many people are wondering: Where is Bitcoin at the bottom? Is there an ultimate soil indicator?
Jan Wustenfeld: I would now say: probably not. While there are many on-chain based indicators pointing down. However, in the current macroeconomic situation, it is difficult to choose a definitive bottom indicator.
BTC-ECHO: You have already mentioned the overall economic situation. How big is the economic situation on the price of Bitcoin at the moment?
Jan Wustenfeld: The effect is enormous. In recent months in particular, issues such as inflation and high market uncertainty have had a negative impact on Bitcoin. The increasingly restrictive monetary policy is also having a negative impact. I think macro uncertainty is the biggest influence right now. Because we see on-chain that more and more BTC is in the hands of long-term holders, but the price is still not moving up. This is due to the dominance of macroeconomic influence.
BTC-ECHO: Could a new bull market be under way before inflation falls and macroeconomic conditions recover?
Jan Wustenfeld: d rather not. Unless, for some reason, demand increases sharply. But I think a new bull market can only develop if the rate hikes or rate cuts stop. Sure, there can always be incentives, such as states offering bitcoin as legal tender. But I’m not entirely convinced that such an impulse could trigger the next bull run.