Investors should be cautious as the economic and regulatory context could limit the sustained growth of cryptoassets. Given the recent optimism in the crypto market driven by decisions of major central banks, there are signs of uncertainty in the medium and long term.
Cryptocurrencies continue to show strength after the recent decisions of the Federal Reserve (Fed), with the Bitcoin staying above the US$63,000, despite a slight correction from its peak US$64,000 reached in the Asian session. Ethereum, like other cryptocurrencies, also registers a similar behavior, trading stable above $2,500.
The enthusiasm also extends to altcoins, like Solana and Avalanchewhich have seen significant gains. However, this optimism could be temporary, as some major tokens, such as Toncoin and Bitcoin Cashsuffer minor corrections.
The impetus for this crypto rally is partly due to the Fed’s interest rate cut, which has generated expectations of greater liquidity in the markets. In addition to this, the Bank of Japan’s decision not to raise rates has been welcomed by investors, as it is considered a measure to avoid a crash similar to the one that occurred in July. At a global level, the movements of the main central banks are having a strong impact on crypto assets, favoring the entry of new capital.
Bitcoin: the data that the market analyzes
Despite this encouraging outlook, some experts have pointed out worrying signs that could negatively affect Bitcoin. Recent large volume movements of this cryptocurrency, particularly from a whale that had held 250 BTC inactive since 2009, are being closely monitored. These historic movements often generate nervousness, as they could lead to bearish pressure on the market.
The economic environment remains uncertain, which could negatively impact Bitcoin’s medium- and long-term outlook. While the cryptocurrency has shown resilience in the past, the Fed’s projected high interest rates and increasing regulatory scrutiny could limit investor enthusiasm, especially retail investors, whose interest has waned noticeably.
Source: Ambito
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