Sean Farrell Predicts Bitcoin Has Passed Its Bottom

Sean Farrell, the Chief Strategy Officer at Fundstrat, believes that Bitcoin may have recently passed its bottom and the medium-term outlook is more positive. He emphasizes that the crucial factor is not only the price movements of BTC but also how the U.S. Treasury manages its debt structure and liquidity. Farrell suggests that if Washington continues to buy long-term bonds and uses more short-term Treasury bills for funding, this could ease financial conditions and support risk assets. On November 4, the U.S. Treasury announced it could buy up to $70 billion in off-the-run bonds to support liquidity, along with a maximum of $25 billion in short-term bonds. However, the Treasury has not yet announced a clear reduction in the issuance of 10-30 year bonds. Farrell believes that a large budget deficit and high debt burden could lead the U.S. to maintain softer financial conditions in the long term. If long-term yields decrease, the USD weakens, and liquidity increases, Bitcoin could benefit as an alternative asset amid the risk of fiat currency depreciation. He also warns that the market may still experience short-term volatility from geopolitical risks, the AI market, and credit conditions.

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