Key Points
- •IG Group analyst Chris Beauchamp indicates potential crypto rebound with expected Fed rate cuts.
- •Short-term bottom may form as loose monetary policy attracts funds.
- •Bitcoin and Ethereum buyers show interest after recent price dip.
Analyst Outlook on Crypto Rebound
Chris Beauchamp, Chief Market Analyst at IG Group, anticipates the Federal Reserve's potential interest rate cuts will stimulate a rebound in Bitcoin and Ethereum this week. Looser monetary policies may attract funds to crypto markets, boosting Bitcoin and Ethereum after recent price dips offer attractive investment points.
Beauchamp highlighted expectations of a continued recovery in Bitcoin and Ethereum due to prospective Fed rate cuts predicted for this week. These anticipated reductions are seen as a driver for inflows into cryptocurrencies, particularly following the recent decline which made entry points more attractive.
The expected shift in monetary policy suggests that looser conditions may bolster demand for risk assets such as Bitcoin and Ethereum. According to Beauchamp, this environment may support short-term gains, underscoring a rebound in major cryptocurrencies.
Chris Beauchamp, Chief Market Analyst, IG Group, has commented that easing cycles can support a rebound in Bitcoin and Ethereum following pullbacks, highlighting the macro view rather than specific project events.
Bitcoin's Historical Performance and Current Status
During the Fed's 2019–2020 easing cycle, Bitcoin (BTC) surged as a risk asset compared to its usual volatility, drawing heightened investor attention through macroeconomic shifts.
Bitcoin's current price stands at $89,960.23, with a market cap of $1.80 trillion and dominance at 58.43%. Recent trades recorded a 0.14% increase over 24 hours, against a 6.13% rise over the past week. Despite a 30-day decline at 11.63%, Bitcoin remains a key market player.
The Coincu research team suggests that financial markets might witness increased interest in crypto due to the prospect of easier monetary policy. Historical patterns indicate that lower real rates usually stimulate higher investments in riskier assets, potentially benefiting Bitcoin and Ethereum.
Disclaimer
The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.