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Kling

Bitcoin

Impact

While the Bitcoin price hasn’t reclaimed the crucial $60,000 level to reenter the previous 4-month trading range, Ikigai Asset Management Chief Investment Officer (CIO) Travis Kling thinks that the current bearish phase is not more than a “boogeyman.” Via X, Kling <a href="https://x.com/Travis_Kling/status/1810716846133485578" target="_blank" rel="noopener nofollow">listed</a> eight reasons to be bullish on Bitcoin. He stated: “NFA. I’m wrong often. The current “bearish” backdrop seems easier to look through and buy than most of the boogeymen we’ve had in these markets over the last 6 years.” 
<h2 id="1-rapid-bitcoin-liquidations-by-germany">#1 Rapid Bitcoin Liquidations By Germany</h2> 
Travis Kling observes that <a href="https://www.newsbtc.com/news/bitcoin/german-bitcoin-rapid-selling/" target="_blank" rel="noopener ">Germany has significantly decreased</a> its Bitcoin holdings, from 50,000 BTC to 22,000 BTC in recent weeks. According to him, “Germany is speedrunning their #Bitcoin dump.” He predicts the selling will soon cease, suggesting, “By the time they get down to ~5k, the market will look through it.” Kling implies that the market impact of Germany’s Bitcoin liquidations is temporary and nearing its end. 
<h2 id="2-mt-gox-s-overestimated-market-impact">#2 Mt. Gox’s Overestimated Market Impact</h2> 
Kling addressed the potential market effects of the <a href="https://www.newsbtc.com/bitcoin-news/massive-mt-gox-bitcoin-shift-unlikely-to-disrupt-prices-says-cryptoquant-ceo/" target="_blank" rel="noopener ">Mt. Gox repayments</a>, characterizing the fear of massive sell-offs as more speculative than based on the creditors’ likely actions. He stated, “Gox seems more FUD than actual mass selling (just a guess but feels that way).” 
He believes the creditors, many of whom are sophisticated investors, are likely to sell their holdings methodically, e.g. via TWAPs, thus reducing the impact on the market. Regarding the retail investors, Kling asked a rhetorical question, “You’ve hung on for decade when you could have sold ages ago. You’re just going to aggressively dump now, three months after the halving?” #3 US Government’s Bitcoin Strategy 
Regarding the <a href="https://www.newsbtc.com/news/bitcoin-price-plummets-as-us-government-transfers-2b-in-seized-silk-road-btc-coincidence/" target="_blank" rel="noopener ">US government’s</a> Bitcoin sales, Kling emphasized the measured approach taken so far. He stated, “But they’ve been pretty measured with selling so far, so I assume they’ll continue to be pretty measured.” While he admits that the US government selling is the “hardest to get your head around in terms of pace/method, and their stack is huge,” he claims that the selling is unlikely to disrupt market stability. #4 Retail Investment Boost Through ETFs 
Kling highlighted a surge in retail investment in Bitcoin, particularly through ETFs, following recent price dips. He remarked, “You have boomers slurping the dipperino in the BTC ETFs Fri and Mon.” This trend indicates strong retail investor interest in capitalizing on lower prices, suggesting a bullish sentiment among this investor segment. #5 Ethereum ETF Anticipation 
With the anticipation of <a href="https://www.newsbtc.com/news/ethereum/experts-ethereum-etf-launch-mid-july-price-rally/" target="_blank" rel="noopener ">US spot Ethereum ETFs</a>, Kling noted that the price of ETH remains only slightly below its level prior to the emergence of ETF rumors, indicating minimal speculative hype has been priced in. This observation suggests that the market could react positively to the launches. #6 Interest Rate Cuts Are Near 
Kling also discussed the potential for upcoming Federal Reserve <a href="https://www.newsbtc.com/news/no-fed-rate-cuts-no-worries-for-bitcoin/" target="_blank" rel="noopener ">rate cuts</a>, noting the market has priced in a significant probability of such an event in September. He stated, “If inflation/labor data is light this month, Powell will likely tell the market that Sept is a live meeting at the 7/31 FOMC. Nickileaks has already teased this.” 
The fund manager is referring to Wall Street Journal’s Nick Timiraos who is also known as “mouthpiece of the Fed”. A few days ago, Timiraos wrote via X that the June jobs report will make the July Fed meeting “more interesting” because. “For the first time all year—a real debate over whether to cut at the *next* meeting (in September),” he remarked. #7 The Potential Trump Pump 
Kling speculated on the political landscape’s influence on Bitcoin, particularly under a potential Trump presidency. Kling posed a rhetorical question, “What else would you rather own than crypto going into a Trump presidency?” with regards to the latest pro-Bitcoin and crypto <a href="https://www.newsbtc.com/news/ceo-drops-bombshell-trump-campaign-eyes-crypto-friendly-policies/" target="_blank" rel="noopener ">comments</a> by the leading presidential candidate in the polls. #8 Bitcoin And Nasdaq Re-Coupling 
Kling pointed out the disparity between NASDAQ’s continual new all-time highs and Bitcoin’s relative underperformance. He noted, “NASDAQ keeps making new ATH after new ATH. Crypto has completely decoupled to the downside.” He suggests that Bitcoin is undervalued relative to the major market index and soon starts a catch-up rallye. “You could argue BTC is lagging QQQ by 40% YTD,” Kling concluded. 
At press time, BTC traded at $59,147. 
<img loading="lazy" decoding="async" class="wp-image-628810 size-full" src="https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-10_09-14-35.png?resize=3628%2C1675" alt="Bitcoin price" width="3628" height="1675" srcset="https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-10_09-14-35.png?resize=3628%2C1675?w=3628 3628w, https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-10_09-14-35.png?resize=3628%2C1675?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-10_09-14-35.png?resize=3628%2C1675?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-10_09-14-35.png?resize=3628%2C1675?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-10_09-14-35.png?resize=3628%2C1675?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-10_09-14-35.png?resize=3628%2C1675?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-10_09-14-35.png?resize=3628%2C1675?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-10_09-14-35.png?resize=3628%2C1675?w=1140 1140w, https://www.newsbtc.com/wp-content/uploads/2024/07/BTCUSD_2024-07-10_09-14-35.png?resize=3628%2C1675?w=3000 3000w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1">

8 Reasons Why The Bitcoin Bear Phase Is Just A ‘Boogeyman’: Fund Manager

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