In recent days, the price of Bitcoin is seen heading towards the $99,000 mark. As the United States shifts its focus away from employment toward inflation, the rising unemployment rate has reached new heights. This situation has not only fueled expectations for interest rate cuts but also provided support for cryptocurrencies. Meanwhile, statements by Williams have mitigated the downturn sparked by Lisa Cook’s remarks.
Predictions from the Crypto Oracle
Roman Trading, known for its forecasts, had anticipated a decline before Bitcoin fell from the $80,000 mark. During those times, BTC was well above the recent dip of $40,000. Despite suggesting an ongoing downturn, the analyst who shared the graph below also predicted a short-term pause.
“BTC witnessed a $40,000 drop without a real rebound. Given historical oversold indicators, a bounce wouldn’t be surprising right now.
However, don’t celebrate just yet. Nothing rises/falls in a straight line. Note that this correction occurred during a low-volume holiday period.”
Is Bitcoin Set to Rise?
Anıl (anlcnc1) recently highlighted changes in the Coinbase Premium amid the recent rise. The strong negativity here significantly accelerated the decline in cryptocurrencies. The possibility of a sustained market upswing is suggested as U.S. investors begin to buy again. However, as anlcnc1 pointed out, this appetite should also be evident in the ETF space. Stronger inflows than last Friday would positively impact sentiment.
Tomas commented on the macro situation:
“We’re in a ‘high sugar’ environment where risky assets need the ‘sugar hit’ (rate cut) or face crisis.
Markets have been trading in alignment with the possibility of a December rate cut for weeks.
Risky assets were in a downturn since a hawkish rate cut at October’s FOMC meeting. Powell indicated in December, a rate cut is ‘not a foregone conclusion, in fact, a distant possibility,’ and other Fed members began opposing the idea.
On Friday, New York Fed President John Williams remarked, ‘I think there’s room for more near-term adjustments in the target range.’ This comment just marked the bottom point.”
Hence, sentiment on the macro front is positive.
There are comments about a $5 billion outflow in the ETF channel as a potential signal of a great disruption. But Bloomberg ETF Analyst Eric provided the best response to this today.
“Because there had never been any outflow! That’s 3% of the total ‘record’ AUM. The real story (certainly not to be written in big letters by the media) is that 97% of investors maintained their investments despite a -35% decline.”
Remaining updated is crucial these days as news flows directly impact charts.