The cryptocurrency market analyst, Marcel Pechmann analyzed the factors, so the bitcoin could go back to the US$22,000.
First, he argues that this arises as a result of the change in confidence of investors after the expected verdict in favor of Grayscale Investment before the Securities and Exchange Commission (SEC) of the USA on August 29, as well as the delay of several requests exchange-traded funds (ETFs) Bitcoin cash.
Bitcoin: the factors outlined by Pechman
- Various legal actions promoted by the SEC against Binance and Coinbase.
- The slowdown of inflation in United States.
- strengthening of the dollar (maximum six months).
- A overall recession.
- The strength of the Treasury bond America in times of uncertainty.
According to Pechman, several legal actions promoted by the SEC against Binance and Coinbase stand out in bearish territory, including the threat of a possible indictment by the Department of Justice from USA related with money laundering and collaboration in transactions with Russian entities.
However, what is even more relevant is the decrease in the rate of inflation in the USwhich reached 3.2%, while the Federal Reserve Begin to withdraw liquidity of the financial markets.
The analyst also examines the claims made by his colleague and founder of BitMEX, Arthur Hayeswho argues that the bullish market for Bitcoin started in March. Hayes identifies the fall of the Silicon Valley Bank and the subsequent intervention of Treasury Department American as the key moments for the market of cryptocurrencies.
Although Pechman largely agrees with Hayes’ view, he highlights the dilemma posed by the US Dollar Indexwhich evaluates the value of the dollar against six other major currencies.
Bitcoin, dollar and the Federal Reserve
how you reported AmbitCurrently, this index is at levels similar to six months ago. Pechman argues that investors are beginning to recognize thethe probability that other countries may face economic crises before the US in the event of a overall recession.
Ultimately, Pechman believes the Fed doesn’t care whether to bail out the banks could unleash economic turmoilsince the Treasury bonds and the dollar Americans are still considered the safer investment options.
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