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This apparent contradiction can be attributed to two pivotal factors: the uncertainty surrounding economic policies, particularly tariffs, and the inherent lag in the responsiveness of crypto prices to liquidity changes. The current political climate, marked by fluctuating tariff discussions, has introduced significant market uncertainty, historically detrimental to risk assets like crypto.
Yet, these uncertainty spikes have been short-lived. A definitive clarity regarding tariffs could restore confidence and breathe new life into risk assets. Furthermore, it’s important to note that the effects of increasing liquidity on Bitcoin's price often manifest after a delay, typically around three months based on historical patterns.
Looking Ahead: Forecasting Future Cycles