The bitcoin course is disappointing. Why do we still see declines?
The bitcoin course is not growing so far. And this despite the fact that the FED reduced interest rates on September 17. What is happening is, however, the correction of the growth we observed earlier.
Ether also does not get more expensive, but here we are dealing with a correction rather than the end of the bull market.
The Fed Watch Tool valuation shows that we have more foot cuts ahead of the Fed, which means that we are created a cryptocurrency -friendly environment.
The growing pressure of Donald Trump on a federal reserve on deeper interest rate reductions and changes in management threatens to politicize the current monetary policy, undermining the independence of the central bank and extending delays in response to economic challenges. In the face of balancing between fiscal stimulation and inflationary risk, such tensions may weaken trust in the credibility of the fed, which in effect subtly weakens the American dollar and paradoxically drives the increase in the value of risky assets, such as cryptocurrencies, through cheaper loans and the escape of capital from fiducinated currencies.
The ongoing inversion of the income curve, which already signals recession pressure, is deepened by this uncertainty, forcing the markets to take into account slower mitigation of monetary policy and extend the variability of traditional assets. In the case of cryptocurrencies, this effect is mixed: significant reduction of interest rates would cause an increase in risk appetite and would confirm the role of Bitcoin and Ethereum as a protection against devaluation of fiducinent currencies, while the fed resistance could cause short -term turmoil, exposing investors to convince investors in the face of political friction.
Ultimately, however, structural disturbances indicate cryptocurrencies as long -term beneficiaries. Inversions of the profitable profitability of the fluidity voltage preceded, which increased the attractiveness of decentralized assets – even if short -term fluctuations burden leveled positions. In this context, Bitcoin has the potential to reach 100,000-150,000 USD in four to six weeks, powered by inflows to ETFs and growing institutional demand. Ethereum, in turn, can increase to a range of USD 3,800-5,000, using similar dynamics.
With mass influx of capital to BTC and ETH ETFs, the current macroeconomic background is conducive to the “Buy the Dip” strategy, because the entrance of the institution in the conditions of political noise helps to establish bull foundations for risky assets.
