Similarly, other smaller tokens or altcoins like Cardano and Polygonthey gained between 40 and 60% in recent weeks, dragged down by what seems to be a relief in the selling pressure that these assets had since November 2021.
In any case, the monetary policy decision of the Federal Reserve (FED) that it will report this Wednesday -in which central bank officials are expected to increase rates by 0.25%- may affect the price of crypto assets.
“The market is overly bullish on a quick Fed turnaround,” said Vetle Lunde, a senior analyst at Arcane Research, who said he expects short-term bearish behavior “as crypto market strength seems overblown.”
“The market is behaving as if the Fed’s easing is already upon us. In other words, he tells us that risk is back. Not in a massive way at the moment, but growing confidence that the US rate peak is near and that confidence will continue to improve is encouraging investors to take more risk to beat the rush for higher yields,” Noelle wrote. Acheson, author of the “Crypto Is Macro Now” newsletter, in a document reported by Bloomberg.
The rebound from last year’s deep decline is part of a broader revival in risk appetite on expectations that central banks will slow interest rate hikes and perhaps even cut borrowing costs later this year. year as super-high inflation moderates.
In this sense, the recovery in the price of BTC and the crypto market in general occurs despite the fact that the crypto industry is still dealing with the consequences of the collapse of the FTX empire and other truncated company projects, which led companies to bankruptcy. smaller ones and hundreds of thousands of savers to lose their money.
Despite this year’s gains for cryptocurrencies, crypto market prices are extremely depressed compared to where they were trading at the height of the 2021 bull run, when Bitcoin hit nearly $69,000.
“We could fall further, I have to be cautious, but the macro environment is showing signs of easing and is giving way to a potential market reversal,” said Les Borsai, director of strategy at crypto asset manager Wave Financial.
Source: Ambito
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