Leading cryptocurrency Bitcoin And in altcoins While the tension between Iran and Israel continues to be effective, there was a sudden decrease again last night.
BTC While it fell back to $ 62,000, the analysts who expected a rally before the halving also gave up.
At this point, there will be a rally before the halving and the price will reach record levels. 10X Research founder Markus Thielen has been bearish on risk assets, including tech stocks and cryptocurrencies, for a variety of reasons.
Stating that the upward trend in cryptocurrencies has decreased in a note to his clients, Thielen wrote that in this case, the decrease in the possibility of the FED to cut interest rates, the increase in bond yields and the decrease in flows to spot BTC ETFs listed in the USA were effective.
“Our growing concern for risky assets such as Bitcoin and cryptocurrencies and stocks is that they are on the verge of a significant price correction.
The primary and most important reason for this situation is unexpected and persistent inflation. This means that the FED will keep interest rates higher for a long time, and at this point, the possibility of the FED reducing interest rates decreases.
Because much of the 2023/2024 Bitcoin rally is driven by expectations that interest rates will be lowered, and this narrative is now being seriously questioned.
Another important reason is that flows into US-listed spot Bitcoin ETFs have dried up. Because high inflows to ETFs also had a great impact on the BTC rally.
After the initial excitement of innovation, ETF flows tend to dry up unless prices continue to rise.”
Finally, the analyst stated that the increase in bond yields is also effective in the decline in risky assets such as BTC. “So-called hawkish repricing, spurred by the economy with sticky U.S. inflation and a resilient labor market, has pushed the 10-year Treasury yield up 40 basis points this month to 4.61%, its highest level since November 2023. This so-called risk-free interest rate has reduced the appeal of investing in high-risk/high-return assets such as technology stocks and cryptocurrencies.” said.
Bitcoin At the time of writing, it continues to trade at $62,970.
*This is not investment advice.
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