As the crypto world eagerly awaits the future of bitcoin, Coinbase, a leading cryptocurrency exchange, has revealed that various technical pressures are beginning to dissipate. In their latest “Weekly: Constructive Outlook” report, analysts from Coinbase, including David Duong and David Han, emphasized the potential impact of macro factors on the digital asset class in the coming weeks.
According to Duong and Han, the recent liquidations at FTX, the selling off of Grayscale Bitcoin Trust shares, and the resurgence of previously bankrupt entities, all indicate that the intense technical pressures on bitcoin and the broader crypto market are starting to subside. The Coinbase analysts also highlighted the steady inflow of over $200 million daily into U.S. spot bitcoin ETFs and a daily volume of approximately $1.35 billion as further evidence of the market’s positive sentiment.
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Looking ahead, the Coinbase team predicts that macro factors will take center stage in influencing the performance of the digital asset class. This shift could prove to be a boon for the industry, providing much-needed support for bitcoin and other cryptocurrencies. As the crypto world braces for what’s to come, all eyes will be on Coinbase and its expert insights.
Not only does the report delve into the current state of the U.S. economy, but it also sheds light on a promising outlook. The likelihood of a gentle descent has risen since a mere few months ago, with the American market displaying a delicate balance between productivity and inflation. Remarkably, the analysts at Coinbase foresee this downward trend to continue, predicting a 100-basis point decrease in interest rates from the Federal Reserve this year. This contrasts sharply with the 75-basis point estimate on the dot plot and the nearly 150-basis point figure embedded in Fed funds futures. To sum it up, their expert analysis concludes with the belief that the U.S. will begin cutting rates in May, followed by the easing of quantitative tightening – all while coinciding with events like the highly anticipated bitcoin halving. This, in turn, will create a favorable environment for the asset class as a whole.
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