Will Fed Rate Easing Be The Beginning Of Bitcoin’s Takeoff In Early 2023?

Will Fed Rate Easing Be The Beginning Of Bitcoin’s Takeoff In Early 2023?

The content site is one of the sites that provide the service of answering general questions and solving puzzles and crossword puzzles

Where the content site is primarily interested in answering your questions in all areas, including solving puzzles and crossword puzzles

Answer Will Fed Rate Easing Be The Beginning Of Bitcoin’s Takeoff In Early 2023?

One of the surprising aspects of the current cycle has been Bitcoin’s correlation with traditional markets.

The ongoing bear market cycle for cryptocurrencies has been strange in many ways.

One such trend is the way in which there is a drop in short positions when approaching the potential bottom of Bitcoin.

As is well known, the US Federal Reserve is determined to control inflation by continuing to raise interest rates.

The published data and figures show that a bitcoin hack could happen if the Federal Reserve starts easing interest rates.

Historically, a prolonged downtrend in price has caused Bitcoin to bottom out.

Read:MasterCard launches a platform to help countries and central banks test their own digital currencies

But in the current environment, the top cryptocurrency for several periods has remained in the same low range.

This stagnation led to a decrease in the accumulation of bitcoin whales.

In fact, recent data shows that bitcoin whales are holding their lowest supply in the past three years.

In contrast, the number of addresses containing 0.1 to 10 bitcoins saw a significant increase during the same period.

Is a Bitcoin hack imminent especially with the Fed’s actions?

After a period of correlation with major traditional market assets, the price of Bitcoin rebounded slightly last month.

Bitcoin has outperformed all market assets with the exception of the Dollar Strength Index (DXY).

Subsequent increases in the Federal Reserve have affected market assets as well as Bitcoin in recent months.

According to macro experts, there may be a easing in the Fed rate hike in early 2023.

Gorin Timmer, global macro manager at Fidelity, expects the easing will continue for about two years starting in early 2023.

Read:Bitcoin drops after 7 days of successful growth

He added:

When will the Fed back down?

The forward curve now indicates a terminal rate of 4.93% by early 2023, followed by 130 basis points of easing over the next two years.

Read:Mike Novogratz: Bitcoin Will Overtake Gold In Market Capitalization

Bitcoin launch date:

This may be a possible indication of how Bitcoin will regain its independence from external factors.

Recently, experts predicted that the end of the Bitcoin bear market was imminent.

Ryan Steinberg, CEO of cryptocurrency investment firm Arca, stated that the market is closer to the end of the recession.

For nearly two months now, Bitcoin has been struggling to regain the $23,000 level.

As of this writing, Bitcoin is at $1,070, down 0.4% in the last 24 hours, according to CoinMarketCap.

Read also:

When is altcoin season and will there be a bounce soon?

Cryptocurrency market growth slows in East Asia and crypto trading volumes drop in China

And you can ask questions on the content site through the word “Ask a question” at the top of the site, where we answer your questions in a short time

Previous post
Binance Chairman Explained: We do not use Uniswap (UNI) tokens to vote and control project governance
Next post
When is altcoin season and will there be a bounce soon?