Coinbase experts point out that the decline in the price of BTC has more to do with macroeconomic conditions and expectations of interest rate cuts from the Federal Reserve (Fed).
Coinbase assures that it is “optimistic” despite the fall in the price of Bitcoin.
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Despite the falls suffered by the largest cryptocurrency, Coinbase experts point out that the weakness has more to do with macroeconomic conditions than with the conditions of the specific cryptoasset market. Thus they warn that cryptoassets are moving in relation to the Fed’s decisions regarding interest rates.
“More generally, it is important to note that the recent decline in Bitcoin has not only occurred in cryptocurrencies, so, “In our opinion, it is not indicative of a sector-specific capitulation.”, these experts explain in one of their recent reports.
And they added that both Risk equities such as gold, a store of value, are trading lower from their early to mid-April highs, amid the strengthening of the dollar. “What makes us optimistic about this decline is that the maximum drop in BTC from its maximum is 23%, below its historical range,” they expanded.
In additionCoinbase analysts point out that this trend of general reduction in declines “will persist, in part, due to the legitimization of BTC as a macro asset”.
This is due not only to the approval of spot exchange-traded funds (ETFs) in the US, Canada and Europe, but also to theThe recently launched ETFs in Hong Kong and new applications to create such products in Australia.
Source: Ambito
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