Crypto:
30349
Bitcoin:
$64.246
% 0.42
BTC Dominance:
%54.0
% 0.22
Market Cap:
$2.34 T
% 1.02
Fear & Greed:
63 / 100
Bitcoin:
$ 64.246
BTC Dominance:
% 54.0
Market Cap:
$2.34 T

Analytics Firm Reveals Factor It Claims Will Help Bitcoin, Ethereum and Other Cryptocurrencies Rebound

Bitcoin 1

Analysts from analysis firm QCP Capital announced the factor that they claim will lead to a recovery in Bitcoin and the overall cryptocurrency market.

Analysts at QCP Capital highlighted the potential impact of two US economic policy decisions on market sentiment for risk assets, particularly cryptocurrencies such as Bitcoin and Ethereum.

In a report released today, analysts pointed to Fed Chairman Powell’s post-rate decision speech as a key factor. During his speech, Powell announced that Quantitative Tightening (QT) was reduced from $60 billion per month to $25 billion. According to analysts, this move is expected to encourage a sense of risk in the market that could benefit cryptocurrencies.

Analysts also noted the Quarterly Refund Announcement (QRA). The Treasury stated that it would not change issuances for longer maturities in the QRA. According to analysts, this decision is likely to ease fears of a rise in long-term yields.

These policy decisions could help quell the dollar rally, a development that would be positive for risk assets, according to QCP Capital analysts. “This should help pull down the dollar rally, which will be positive for risk assets, which likely led Bitcoin to bounce from $56,500 and rise decisively above $58,000, while Ethereum is back close to $3,000,” analysts said.

A strong dollar can generally deter investment in risky assets like Bitcoin, as it pushes investors to seek higher returns on bonds and term deposits, increasing demand for the dollar overall, according to the analyst. Therefore, policies that limit the dollar’s power could create a more favorable environment for cryptocurrencies.

Rate this post
READ:  Whale Who Accumulated Ethereum from Last Year's Dip Starts Selling on Binance

Leave a Reply

Your email address will not be published. Required fields are marked *