After a period of mostly bearish numbers, analysts at Coinbase note that the downward pressure on the price of Bitcoin (BTC) and the broader crypto market is gradually easing. This change could lead to a much better trading environment in the coming weeks, a signal that investors and traders will be watching closely.
Technical signals point to improvement
According to Coinbase’s weekly market report, certain technical factors that have previously provided downward pressure on the crypto market are easing. A key development that has removed much of the downward pressure is the completion of the sale of a significant amount of GBTC shares by FTX’s bankruptcy estate. This sale helped ease selling pressure on Bitcoin as hundreds of millions of GBTC shares were sold.
The report also highlights an increase in net inflows into US spot Bitcoin ETFs, which averaged more than $200 million per day over the past week. This signals renewed investor interest and confidence in Bitcoin, with total net inflows since January 11 reaching $1.46 billion. Such moves suggest that macroeconomic factors are playing an increasingly important role in the performance of digital assets.
Prospect of interest rate cuts – impact on BTC?
Also interesting is the recent announcement from the US Federal Reserve, which suggests that monetary policy easing is expected to begin on May 1 and balance sheet reduction may end in June. This development, combined with the continued resilience of the US economy, increases the chance of a “soft landing” following the Fed’s recent series of interest rate hikes. Coinbase analysts see this as a positive sign for Bitcoin and other tokens in the second quarter of 2024.
As bearish pressure eases and a rate cut may coincide with the Bitcoin halving, stars are favoring an uptrend in the price of Bitcoin and other digital tokens. The coming months promise to be interesting for investors in the crypto market, with a possible turning point paving the way for significant growth.
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