During a recent episode of CNBC's "Fast Money," Dan Nathan, principal of RiskReversal Advisors, says that it is going to take a pivot by the U.S. Federal Reserve for Bitcoin to start another rally.
Unfortunately for bulls, the trader does not see such a scenario playing out in 2022.
Earlier this week, the Wall Street Journal reported that the Fed was on track to announce another 75-basis point interest rate hike. In his hawkish Jackson Hole speech delivered in late August, Fed Chair Jerome Powell made it clear that the central bank would not pivot away from aggressive tightening.
The Fed has been hiking interest rates at the fastest pace since the 1980s in order to tame high inflation.
Nathan has also noted that the Bitcoin dominance level is at its lowest level in a long period of time, which is unlikely to bode well for the market.
He also says that the top cryptocurrency is trading like an ordinary stock, so bulls will have a hard time crafting a new narrative.
It was a cruel, cruel summer
Bitcoin's performance was nothing short of disastrous this summer. In June, the cryptocurrency scored its worst month in more than a decade, plunging more than 37.3%.
The flagship coin staged a mild recovery in July, adding 17.9%. However, it then erased virtually all of these gains.
September, a historically bearish month, is also off to an underwhelming start. On Wednesday, the Bitcoin price dipped to $18,540, coming awfully close to the 2022 low.