Market Reviews

The heat in the crypto continues to intensify



Previously, we gave a forecast for the growth of major cryptocurrencies.

The main drivers were expectations of positive regulatory approval for spot ETFs and geopolitical tensions in the global economy and order.

To these drivers, another important factor was added – the monetary policy of the US Federal Reserve.

We believe the flagship cryptocurrency Bitcoin, followed by its derivatives, could see significant capital inflows as market indicators suggest the Federal Reserve could move to a more dovish stance in 2024.

According to FedWatch CME, recent futures trading data suggests that investors are already pricing in market prices that the US Federal Reserve will keep interest rates unchanged with further cuts based on current trends and inflation forecasts.

Bitfinex analysts also said that if the Fed signals a rate change in 2024, it would mean the central bank expects economic fundamentals to rebalance, which could further fuel investor optimism.

In simple words, if the US Central Bank weakens the weight of the value of the dollar in relation to other assets, including leading cryptocurrencies that are traded and backed by the dollar, then they will supply a lot more fuel for the “rocket” of growth and conquering unprecedented heights in the value of Bitcoin.