Bitcoin Set For Positive Performance In Q2 2024: Coinbase Analysts
03 Fevereiro 2024 - 7:50AM
NEWSBTC
Analysts at cryptocurrency exchange Coinbase are backing Bitcoin
and the entire crypto market to put up a significantly positive
performance in Q2 2024. This development comes as BTC continues its
market recovery, gaining by 3.31% in the last week to trade above
$43,000. Related Reading: Expert Analysis: Bitcoin ‘Bottom Is
Not In’, Potential $30K Retest On The Horizon Downward Pressure On
Bitcoin Subsides, Macro Factors To Come Into Play: Analysts In the
Coinbase weekly report on Friday, the American exchange’s analysts
noted that the market factors that induced downward pressure on
Bitcoin were being phased out. This claim is backed by the
completion of the GBTC’s liquidations by defunct exchange FTX as
well as the recovery of certain crypto entities from bankruptcy,
indicating a change in the dynamics of the BTC market.
Furthermore, the analysts also highlighted the stable performance
of the Bitcoin spot ETF market in the last week, marked by average
daily net inflows of $200 million and a daily trading volume of
$1.35 billion in the last week. However, in the coming weeks,
Coinbase market experts have predicted the macroeconomic factors to
gain more influence in the crypto market. In particular, the
analysts made reference to the US Federal Reserve’s decision to
postpone the deliberation on scaling back its quantitative
tightening (QT) to the next Federal Open Market Committee (FOMC)
meeting in March. Based on this development, they predict the
easing cycle will begin on May 1, which typically involves measures
such as lowering interest rates to make loans cheaper and stimulate
economic activity. In addition, they anticipate the Fed to start
halting its balance sheet reductions by June to further support the
US economy. Interestingly, they believe the Fed could
consider implementing the end of the balance sheet reduction at the
same time with rate cuts. Based on the “anodyne” policies
policymakers implement in an election year, Coinbase analysts
predict the US apex bank will cut interest rates by 100 basis
points (bps) – 25bps more than the Fed’s expectation for future
rates – which is equivalent to lowering rates by 1%.
Generally, a reduction in interest rates is a positive omen for the
digital asset ecosystem as it allows investors to pay low borrowing
fees, accumulating more funds to invest in risk assets such as
crypto tokens. Based on the multiple factors listed above combined
with “idiosyncratic” factors, such as the Bitcoin halving, the
analysts at Coinbae predict BTC, alongside other tokens, will serve
as favorable portfolio additions in Q2 2024. Related Reading:
Will Bitcoin Hit $1 Million By 2028? Experts Clash Over Bold Price
Prediction Bitcoin Price Overview At the time of writing, Bitcoin
trades at $43,077.76 with a 0.20% gain in the last day. Meanwhile,
the asset’s daily trading volume is down by 15.45% and is valued at
$16.78 billion. With a market cap of $844.85 billion, BTC continues
to rank as the largest cryptocurrency in the world. BTC trading at
$43,048 on the daily chart | Source: BTCUSD chart on
Tradingview.com Featured image from CNBC, chart from TradingView
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