Unlike previous instances, where Bitcoin’s growth during halvings acted as a catalyst for a crypto industry rally, the current cycle has witnessed a shift in factors driving the market. Coinbase suggests that crucial macroeconomic elements such as the monetary policy of the US Federal Reserve System (FRS), deflation, and the increasing national debt of countries will play a decisive role.
Moreover, Coinbase analysts believe that altcoins will display an even stronger correlation with Bitcoin, responding directly to fluctuations in the value of the leading cryptocurrency.
Additionally, the experts at Coinbase highlight the impact of Bitcoin’s stability and the introduction of spot exchange-traded funds (BTC-ETFs), as these have divided the pool of crypto investors into two distinct groups. One faction views Bitcoin as a speculative asset, while the other sees it as a suitable asset for hedging against political risks.
Earlier, Coinbase specialists predicted that a decrease in the US Federal Reserve’s base rate, which is anticipated in 2024, will allure more investors towards protective assets like gold and Bitcoin.