Developments on the macroeconomic front, the risk of further BTC sales by the US government, and upcoming elections. These three major agendas directly and significantly impact cryptocurrencies. The volatility that has been exhausting investors for months has weakened positions in altcoins and led to a decline in capital flow. So, what are the current views of experts?
The 3 Important Agendas of Crypto
Experts at QCP Capital recently published a market assessment highlighting several important points. Here, the current situation is discussed in light of recent developments, and an attempt is made to explain the ongoing dull period. The three points highlighted in the experts’ latest assessment are summarized as follows:
“1. Improving macro sentiment
Slowing US inflation has boosted market confidence, pushing stocks back to all-time highs. Continued interest rate cuts by major central banks like the RBNZ are strengthening the global monetary expansion wave.
- Fear of a sales regime by the US Government
The US government transferred 10,000 BTC (approximately $591 million) linked to Silk Road to a Coinbase wallet. Although there is no confirmation of a sale, the market remains cautious about the 203,239 BTC and other crypto assets still in the wallet.
- Is Trump a crypto catalyst?
Donald Trump’s two-hour-long interview with Elon Musk did not include a discussion on crypto, disappointing the market.”
Will Cryptocurrencies Rise?
Bitcoin and other cryptocurrencies have gone through such dull periods before. BTC is still at the peak of the previous cycle. However, we should see this as similar to BTC lingering at $20,000 in 2021. In other words, BTC has not yet seen the impressive rallies expected and is not very different from its days at the end of 2020.
QCP experts summarize their views as follows:
“Our view: We remain constructive and bullish towards the end of the year. An especially encouraging factor is the market’s resistance to various ‘supply shock’ headlines for both BTC and ETH this week. In fact, the market rallied on Jump’s repurchase and sale of ETH assets in this round.”
