Analysts Discuss Bitcoin After Recent Drop
After the Bitcoin price dropped below $60,000, some analysts made statements about the status of BTC.
Bitcoin fell alongside global stocks today following a stronger-than-expected U.S. inflation report and a surge in weekly jobless claims.
The decline highlights Bitcoin's increasing sensitivity to economic indicators and central bank policies.
Leena ElDeeb, a research analyst at 21Shares, noted that Bitcoin has become increasingly reactive to inflation data and monetary policy decisions over the years. “A decrease in interest rates tends to have a positive impact on Bitcoin by lowering borrowing costs,” ElDeeb said. “We expect a recovery in market flows following recent geopolitical tensions that have disrupted the financial environment.”
Market experts believe that the US presidential elections to be held in November 2024 will also have a significant impact on market movements. Coinbase’s Director of Research David Duong suggested that the cryptocurrency market could see increased interest from institutional investors looking to trade the election results.
“We think the market reaction in the fourth quarter of 2024 will ultimately be neutral to positive,” Duong said. “Even if there is a sell-off after the fact, we expect institutional investors to step in because there is clearly bullishness for the asset class.”
Duong also noted the Fed’s move toward quantitative easing in September and China’s recent stimulus measures, suggesting that it could take months for these actions to fully impact liquidity. “Overall, we remain optimistic about the outcome for crypto, especially from a regulatory perspective as we approach the election,” he added.
*This is not investment advice.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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