According to experts, the possible “dovish” attitude of the US Federal Reserve (FED) in its monetary policies may start a new bull in the cryptocurrency market.
The FED’s stance on monetary policy has often been closely related to all risk products and traditional investment instruments, including the cryptocurrency market. Market experts say the FED 2024 in the year interest rate reduction He stated that he might prefer to return to a more dovish policy and argued that this situation could create new rising waves for risk assets.
CME’s FedWatch data shows that the FED will be more likely in 2024.pigeonWhile he pointed out that policies could be adopted, experts stated that this situation could increase the inflow of funds into the cryptocurrency sector.
FedWatch, the Fed’s on December 13 target interest rate at its next meeting 5.25% to 5.50% The probability of keeping it within the range is almost %one hundred He pointed out that it was. The data also shows that futures investors are aware of the Fed’s December 2024 at least until the policy meeting 4 interest rate cuts He revealed that he was acting as if it would rain.
Interest rate cuts are essential if the US wants to avoid recession
YouHodler Markets President made a statement on the subject: Ruslan LienkhaHe emphasized that the moves the USA will take to avoid recession will have the power to lift the risk markets:
In the event of a pivot to avoid a recession in the US, the risk asset market could receive significant capital inflows in the second part of 2024. But rate cuts may not start until mid-2024, meaning risk assets will remain under pressure at least until then.
Fed Covid pandemic He implemented the policy of printing money in order to revive the economy that remained closed during and after the period. This policy is Bitcoin’s for 68 thousand dollars It was the fuel for his rise. But then increasing inflation pressure forced the FED to step back, and as liquidity was withdrawn from the market, almost all risk products, including Bitcoin, experienced serious declines.
An increase similar to 2 years ago may occur
CoinShares Research Manager James ButterfilIf the FED, which gives clear signals that the tightening has come to an end according to I, determines a more flexible economic policy in 2024, Bitcoin will also be at risk again. similar to 2 years ago Increases may occur:
While the period of loose monetary policy between 2019 and 2021 coincided with a rise in Bitcoin prices, the subsequent tightening of monetary policy led to a decline.
FED interest rate cut and Bitcoin halving: Great formula for bulls
Cryptocurrency exchange speaking to The Block Bitfinex Analysts also believe that the FEDinterest policy and made similar comments about the connection between the price movement of cryptocurrencies.
Stating that if the FED cuts interest rates, more investments will come to the cryptocurrency sector. bitfinex analysts, this is also more popular among investors. rise directional He emphasized that he would create fans. on the other hand Bitcoin halving will occur in April 2024 It was pointed out that this will happen and that this will coincide with the possible FED interest rate cut in the near future.
Analysts believe that the FED interest rate cut that may come in addition to the positive atmosphere created by the halving unpredictable rises He suggested that it could trigger