{"id":87170,"date":"2023-11-17T12:52:22","date_gmt":"2023-11-17T10:52:22","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=87170"},"modified":"2025-09-13T10:04:46","modified_gmt":"2025-09-13T07:04:46","slug":"experts-predict-capital-inflows-into-bitcoin-after-fed-pivot","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/experts-predict-capital-inflows-into-bitcoin-after-fed-pivot\/","title":{"rendered":"Experts Predict Capital Inflows Into Bitcoin After Fed Pivot"},"content":{"rendered":"

The transition of the Fed<\/span> from tightening to easing monetary policy could have a positive impact on cryptocurrencies. This was reported by The Block<\/a> analysts.<\/p>\n

According to specialists, the turn will be a signal of reduced risk appetite among investors, which will trigger capital inflows into digital assets, including cryptocurrencies.<\/p>\n

The reduction of the Fed’s key rate could coincide with the halving<\/a> expected in April 2024, which historically led to a substantial price rally, they added.<\/p>\n

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\u201cFrom a historical and technical standpoint, this is a bullish event, although a temporary pullback on the ‘selling on the news’ could be possible,\u201d<\/em> the experts noted.<\/p>\n<\/blockquote>\n

Fed rate expectations<\/strong><\/h2>\n

According to the futures market, the probability of a 25 basis point cut in the key rate at the March 2024 meeting is priced at 33.4% (a month earlier it was 7%). On December 13 the Federal Reserve will hold policy unchanged, according to the consensus forecast.<\/p>\n

\"1-831\"
Data: FedWatch<\/a>.<\/figcaption><\/figure>\n

Overall, over the course of next year the market is pricing in a total easing of policy by 100 basis points with a 2-to-1 odds.<\/p>\n

\"2-664\"
Data: FedWatch<\/a>.<\/figcaption><\/figure>\n

CoinShares head of research James Butterfill pointed to historical cases where accommodative monetary conditions led to the price of digital gold higher.<\/p>\n

\n

\u201cFrom a historical and technical standpoint, this is a bullish event, although a temporary dip on the ‘selling on the news’ could be possible,\u201d<\/em> the analysts noted.<\/p>\n<\/blockquote>\n

Head of Markets at YouHodler, Ruslan Lienha, agreed with expectations for monetary loosening, but offered a more conservative view. In his view, the Fed will begin loosening no earlier than the second half of 2024. This could keep pressure on risk assets, including Bitcoin, he explained.<\/p>\n

\n

\u201cWe will see the full impact on Bitcoin’s supply later, when the global economy overcomes current difficulties. If authorities manage to chart a path to a soft landing, the price of the first cryptocurrency will rise significantly by the end of 2024,\u201d<\/em> Lienha added.<\/p>\n<\/blockquote>\n

Earlier, Glassnode analysts estimated the available supply at 2.33 million BTC<\/a> (a multi-year low).<\/p>\n

Bullish signals<\/strong><\/h2>\n

The analyst noted the prevailing bullish sentiment among traders.<\/p>\n

\n

\u201cRising market capitalization of stablecoins, together with rising prices for tokens, will demonstrate market liquidity saturation and point to sustained growth,\u201d<\/em> Li\u00ebnha explained.<\/p>\n<\/blockquote>\n

From 19 October to 10 November, Tether minted an additional 4 billion <\/a> stablecoins USDT<\/a>, according to Whale Alert.<\/p>\n

Bitfinex proposed tracking Bitcoin’s supply dynamics \u2014 the number of coins in the hands of hodlers and speculators, as well as the age bands of spent bitcoins (SOAB).<\/p>\n

\n

\u201cSOAB recently demonstrated that a price decline over a week to roughly $34,500 actually increased the concentration of supply in the cohort of holders who bought 6\u201318 months ago. That category, it seems, is waiting for the halving,\u201d<\/em> the analysts explained.<\/p>\n<\/blockquote>\n

This occurred amid a substantial reduction in the supply of coins among short-term holders, according to the specialists.<\/p>\n

\n

\u201cSeasoned investors who time the market precisely are actually increasing their assets, while new market participants panic-sell when prices fall below their purchase price or plunge,\u201d<\/em> Bitfinex concluded.<\/p>\n<\/blockquote>\n

Earlier, on 14 November it was reported that inflation cooling in the US<\/a> resumed. Macro data contributed to strengthening expectations of a Fed policy pivot.<\/p>\n

Earlier, Matrixport forecast Bitcoin’s price rise to $40,000-45,000<\/a> in 2023.<\/p>\n

Before this, analysts said that Bitcoin shorts would be hit by the \u201cSanta Claus squeeze<\/a>\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"

Bitfinex: the Fed’s shift from tightening to easing monetary policy could have a positive impact on cryptocurrencies.<\/p>\n","protected":false},"author":1,"featured_media":87171,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[18,95,1249,1224,1145,1150],"class_list":["post-87170","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin","tag-bitfinex","tag-federal-reserve-system","tag-macroeconomics","tag-market-analysis","tag-news-plus"],"aioseo_notices":[],"amp_enabled":true,"views":"10","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/87170","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=87170"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/87170\/revisions"}],"predecessor-version":[{"id":87172,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/87170\/revisions\/87172"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/87171"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=87170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=87170"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=87170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}