Matrixport: BTC is still in a bear market environment, and the weakening of the US dollar may support risk asset allocation

Matrixport analysis points out that Bitcoin is still in a bear market environment, with prices still below the 21 week moving average. The increase in policy uncertainty during the US midterm election year overlaps with Bitcoin's four-year cycle, which historically makes prices more prone to weakness. Nevertheless, maintaining a relatively positive assessment of overall risk assets, the inflation narrative remains, and the US dollar is in a weak operating range. Recently, Trump has not released clear support signals or tough statements regarding the weakening of the US dollar. The market tends to interpret this as an increase in tolerance for further weakening of the US dollar, coupled with an increase in non US asset allocation by international funds. In the short term, inflationary trading may receive support.