Bitcoin $81,701.23 In recent weeks, it fell below $ 80,000 and worried investors. However, market analysts emphasize that the possibility of a strong recovery should not be ignored due to the similarity of macroeconomic trends and past cycles. Abra CEO Bill Barhydt says that while establishing parallel with the correction movements in 2017, increasing liquidity can support the crypto money market. Experts point out that the clarification of regulatory steps can also have a positive effect.
Macroeconomic Trends and Bitcoin
According to Bill Barhydt, the current withdrawal reminds the market cycles in 2017. Macro factors such as the increasing money supply and interest policies of the central banks have an impact that raises asset prices. Historical data show that liquidity expansion positively affects Bitcoin. For example, after the financial expansion in 2020, Bitcoin reached record levels.
Uncertainties in the global economy cause investors to turn to alternative beings. Inflation concerns and depreciation of the dollar may ensure that crypto currencies are re -evaluated as a “value storage tool .. In the past, Bitcoin has recovered rapidly under similar conditions. This increases hopes that the current decline may be temporary.
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Role of regulatory steps
Political and regulatory developments in the US are critical for the crypto money market. Recently abandonment of some cases may pave the way for clearer rules. The decrease in the uncertainty of regulation is seen as a factor that will facilitate the return of corporate investors to the market. Especially the losses in the Bitcoin portfolios of large companies increases short -term sales pressure, but long -term plans do not change.
Changes in monetary policies also affect market dynamics. Fluctuations in interest rates and mobility in the mortgage market shape investors’ view of risky assets. Experts, with the clarification of the regulatory framework, the crypto currency market can be restructured, he says. In this process, the increase in liquidity and institutional demand is expected to revive.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
