According to Zach Pandl, research director at Grayscale Investments, a convincing scenario of low inflation and sustained growth in the U.S. economy could have a positive impact on the growth of cryptocurrency market capitalization, the value of bitcoin and other crypto assets, as the U.S. Federal Reserve (Fed) will have room to maneuver and lower real interest rates.
“Otherwise, the regulator will be forced to raise borrowing rates further, monetary tightening will drive the economy into recession, and the cryptocurrency recovery could stall,” Pandl said.
He expects the Fed’s aggressive campaign to tighten monetary policy is nearing completion and price pressure from the regulator will ease.
At the end of the first half of the trading session, the VTS added more than 1% on Aug. 2 and was above the $29,600 level at moments. Overnight, total cryptoasset market capitalization rose 1.25% to $1.18 trillion, offsetting the previous period’s decline.
Earlier, a popular cryptocurrency analyst under the pseudonym TechDev shared the
with the crypto community a speculation about the future massive growth of bitcoin in the
in the coming months if the traditional financial market’s economic cycle
remains positive;