Bitcoin (CRYPTO: BTC) may not have the momentum required to continue an upward trajectory.

That's according to a prominent crypto analyst who believes people are going to start cashing out of the apex cryptocurrency.

What Happened: Nicholas Merten on his YouTube channel also emphasized its correlation with money supply dynamics.

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His insights come at a pivotal moment in the crypto world, with many investors eagerly anticipating the next big move for the leading digital currency.

The analyst's perspective aligns with discussions set to take place at the upcoming Benzinga's Future of Digital Assets conference on Nov. 14, where industry leaders will delve into the intricate relationship between global financial systems and the burgeoning world of cryptocurrencies.

The expert stated, “We cannot sit here and say that Bitcoin is this hedge against money supply debasement… and then simply ignore when it’s [money supply] contracting."

Why It Matters: Bitcoin acts as a hedge against money debasement, implying that its value should increase when more money is printed, Merten explained.

During monetary contraction periods, Bitcoin's value should face challenges and potentially move lower.

"Liquidity is the lifeline, it is the blood of all financial assets to continue appreciating,” he emphasized.

Highlighting the current market dynamics, the analyst pointed out the potential risks for investors buying Bitcoin within the $25,000 – $32,000 range.

“If all those who have been market buying for the past couple of months realize that there’s really not enough momentum to clear through this prior support range," he cautions, "people are going to start cashing out.”

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