NEWSLETTER
In the last two months, the price of bitcoin has collapsed in more than 23% in a prolonged market correction. Significant parts of this decrease have been attributed to a series of new US rates. UU. Announced in February, March and more recently in April.
Despite the short -term bassist effects of this macroeconomic development in the cryptography market, the popular cryptography analyst thousands Deutscher theorizes that btc could benefit substantially from the long -term effects of these policy decisions.
Short -term chaos, long -term clarity: bitcoin with tip for the new ATH
In <a target="_blank" href="https://x.com/milesdeutscher/status/1908380459014463757″ target=”_blank” rel=”noopener nofollow”>Recent post xDeutscher states that bitcoin is ongoing for a new historical maximum despite the current market uncertainty. The analyst explains that although recent commercial and economic policy changes by the administration of US President Donald Trump may be exerting a negative market effect, the sequence resulting from events of these decisions can be optimistic.
First, Deutscher states that the recent economic decisions of the United States government show intentions to induce short -term pain that could weaken the dollar and interest rates that should be beneficial for bitcoin and other cryptographic assets.
However, the new import rates will probably discourage the purchase of Treasury invoices from the United States that force them to depend on national buyers who trigger the hardening of liquidity. As bitcoin is sensitive to liquidity, the contraction of global liquidity will cause greater price drops as investors transfer their funds to safer assets.
Finally, the cryptography market is expected to influence prices in recession fears. When an official recession is announced, the market could be stable and anticipate an economic response of the Federal Reserve.
At this crossing, the US Apex Bank is likely to announce a rate cut that clarifies the path for quantitative flexibility (QE). However, although this that may not happen until 2026, bitcoin will experience a liquidity impulse in dollars of other economic tools, including the repurchase agreements, the program of financing of bank deadlines and the purchases of Treasury invoices.
After this development, bitcoin is expected to embark on an ascending trajectory. The “high quality” altcoins will follow the market leader, while other tokens with little or no utility shrink. Once bitcoin approaches or reaches a maximum price, the Altse season will be activated.
Deutscher explains that it is currently difficult to predict the cryptographic market and American policies in the short term, that is, 1-12 weeks. However, it is likely that its forecast will be deployed in the coming months by placing bitcoin in a strong position for a new historical maximum between the third quarter of 2025 and the first quarter of 2026.
General description of the btc market
At the time of writing, bitcoin was quoted at $ 83,313 after a 0.90% gain in last week. However, the daily negotiation volume of the asset has decreased by 68.68% and is valued at $ 14.25 billion.
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