• News - Factors behind the weak price of bitcoin
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Factors behind the weak price of bitcoin.
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In recent weeks, Bitcoin's movement has been relatively weak, and this is also being hotly discussed by well-known crypto analysts.
James Butterfill, head of research at Coinshares, along with analyst Scot Mellkar also recently discussed the crypto market, Bitcoin (BTC) in particular.
In the interview, Butterfill emphasized the importance of the accuracy of economic forecasts and the suitability of these forecasts with actual data. Currently, a lot of macroeconomic data is unclear and does not match expectations, so this shows that analysts are too optimistic and the United States' macroeconomy is not as good as it seems. we believe.
The Federal Reserve is also included in this trend, while the FED has discussed one interest rate increase this year, the market is also anticipating two increases.
However, Butterfill believes that the predictions are more accurate. If the FED Dol Plot figures shift in the summer, and are more in line with market expectations in September, this could provide significant support for Bitcoin.
Market BTC
Much of Bitcoin's recent initial price weakness was caused by market disappointment with the FED's stance on interest rate cuts.
The Fed's indication of only one potential rate cut this year disappointed investors, but Butterfill expects this view to change throughout the year, and would potentially benefit BTC.
Meanwhile, for Altcoins, the market shows very significant inflows even though the size of assets under management is relatively small, for example Cardano has assets worth $52 million, but last Sunday it had an inflow of around $1 million. and this was confirmed by Butterfill himself, that investors' interest in Altcoins increased rapidly, and they diversified a lot into various cryptocurrencies.
Cardano Market
That's all my information about crypto this time, I hope what I convey can be useful for all of us, greetings @jafar21.
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