Three Arrows Capital’s Su Zhu Lists Factors That Support Bitcoin Rally
According to Su Zhu, Co-Founder of the hedge fund Three Arrows Capital (3AC), there are three potential catalysts that could send Bitcoin (BTC) to a new bull market.
Zhu lists five reasons why he thinks Bitcoin is moving on to an accumulation range and estimates that the downtrend doesn’t have much further to go.
BTC has had seven red weeks in a row, the most in its entire history, which hints that the seller are getting exhausted.
There was a massive trading volume during the collapse of TerraUSD (UST), which could mean capitulation and the beginning of a new trend.
BTC is in a reaccumulation phase, and Bitcoin is showing unusual strength against equities markets during overnight hours. Over the last week, the S&P500 is down 4.5% while BTC is up nearly 1%.
Mayer Multiple, an indicator measures the Bitcoin price against its 200-day moving average to indicate if BTC is overbought or oversold. Mayer Multiple is hovering at historical lows, suggesting that BTC is undervalued.
Bitcoin has been trading at a premium during the Asia session.
Some signs #Bitcoin is re-entering an accumul range
1) 7weeks down, most in btc history 2) largest spot and deriv volume in a yr during lfg liquidation of 80k btc to 26k price 3) btc strength vs stocks overnight 4) Mayer multiple at lows 5) Asian hrs stronger than US hrs pic.twitter.com/FxIwnVHsoX
Zhu also refers to three potential catalysts, which could boost the next bull market for Bitcoin.
“1) El Salvador conference of 44 central banks 2) OPEC to use in international payments 3) commodity nation sovereign wealth to conduct thesis-driven allocations.”
The first catalyst on Zhu’s list points to a meeting held in El Salvador among central bank representatives and other financial authorities from 44 different countries.
The second point refers to the possibility of the Organization of the Petroleum Exporting Countries (OPEC) would accept cryptocurrency as payment for oil purchases.
The third point refers to the possibility of sovereign wealth funds from commodity-centric countries investing in Bitcoin.
At time of writing, BTC trades at $30,280, up 2.8% on the daily chart.
