A prominent macro strategist is making waves with a bold Bitcoin price prediction, suggesting that the current market degrossing phase could be setting up BTC for a major breakout. Felix Jauvin, host of Forward Guidance, argues that shifting global liquidity dynamics and Trump-era trade policies could catalyze Bitcoin’s decoupling from traditional US assets.
Understanding the Degrossing Phase
Bitcoin currently trades at $84,766, experiencing what Jauvin describes as a temporary phase of forced deleveraging. This period of market stress, he argues, is merely “the prelude to an incredible trade once the degrossing is over.” The analyst’s thesis builds on extensive research showing Bitcoin’s strong correlation with global liquidity metrics, citing empirical evidence that gives liquidity an eleven-week statistical lead on spot prices.
In a particularly relevant connection to current market dynamics, recent analysis shows how Trump’s trade policies are accelerating de-dollarization, supporting Jauvin’s thesis about the changing global liquidity landscape.
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The Trump Factor and Global Liquidity Shift
Jauvin’s analysis centers on the Trump administration’s stated goal of reducing trade deficits and encouraging allies to increase fiscal spending. This policy shift could trigger a significant reallocation of global capital flows, potentially benefiting Bitcoin as a borderless, tariff-resistant asset.
Why Bitcoin Stands to Benefit
The case for Bitcoin’s upcoming rally rests on several key factors:
- Decoupling from US tech stocks as global liquidity sources diversify
- Bitcoin’s immunity to tariffs and trade restrictions
- Growing appeal as a neutral store of value amid geopolitical tensions
- Historical performance during periods of global liquidity expansion
Technical Indicators and Market Positioning
Current market data shows Bitcoin maintaining strength despite broader market stress, with technical indicators suggesting a potential breakout at the $85,000 level. This resilience during the degrossing phase could indicate strong underlying demand.
Expert Analysis and Price Targets
While Jauvin stops short of providing specific price targets, his analysis suggests that Bitcoin could see significant upside once global liquidity conditions normalize and capital flows adjust to the new geopolitical reality.
FAQs About Bitcoin’s Market Position
- Q: What is degrossing and how does it affect Bitcoin?
A: Degrossing refers to the forced reduction of leveraged positions, temporarily pressuring asset prices including Bitcoin. - Q: How does global liquidity affect Bitcoin price?
A: Global liquidity has an eleven-week statistical lead on Bitcoin prices, making it a crucial indicator for price movement. - Q: Why might Bitcoin decouple from US tech stocks?
A: As global liquidity sources diversify away from US markets, Bitcoin’s borderless nature could attract independent capital flows.
At press time, BTC trades at $84,766, maintaining stability despite broader market volatility.