Ethereum

Reserve Dollar

FOMC

Chair

Bitcoin

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Bitcoin and Ethereum prices have risen, influenced by US economic policies aimed at restraining dollar strength.</li>
 <li>Analysts predict the value of Bitcoin and Ethereum will continue to be affected by the US economic climate.</li>
</ul>
<p>Bitcoin and Ethereum have both seen an increase in value, with Bitcoin exceeding the $59,000 mark and Ethereum surpassing $3,000. The largest digital asset by market cap rose over 4.3% in the last 24 hours, trading at $59,233. Ethereum’s price also rose by 4% to $2,994 in the same period. The global cryptocurrency market cap today stands at $2.34 trillion, a 3.7% increase in the last 24 hours.</p>
<h2 id="impact-of-us-economic-policies">Impact of US Economic Policies</h2>
<p>Analysts from QCP Capital suggest two US economic policy decisions could foster risk-on sentiment in the market, favoring assets like Bitcoin and Ethereum. They pointed to Federal Reserve Chair Powell’s post-rate decision speech, in which he announced the reduction of Quantitative Tightening (QT) from $60 billion monthly to $25 billion.</p>
<p>They also referenced the Quarterly Refund Announcement (QRA), where the Treasury stated it would maintain issuances for longer maturities, reducing concerns of a rise in long-term yields. These decisions could potentially weaken the dollar rally, which is positive for risk assets, possibly causing Bitcoin and Ethereum to increase in value.</p>
<h2 id="bitcoin-s-role-in-the-market">Bitcoin’s Role in the Market</h2>
<p>Analysts from Bitfinex highlighted Bitcoin’s ongoing role as the main price indicator for the crypto market and its crucial position as a leading indicator for the total market cap of the asset class. They observed a growing correlation between Bitcoin and traditional financial market indicators, especially as more financial institutions incorporate cryptocurrency into their portfolios. As a result, they expect the economic environment to significantly impact crypto asset values in the short term.</p>
<p>Despite the lack of immediate rate cuts following Wednesday’s FOMC meeting, the Bitfinex analysts remain confident in the current economic environment’s resilience. They forecast a period of consolidation for Bitcoin prices over the next one to two months, with trading expected to occur within a defined range while experiencing swings of up to $10,000 in either direction.</p>

US Economic Tactics May Decide Fate of Bitcoin and Ether Surge, Experts Suggest

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Další články publikované 2. 5. 2024

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