According to Mark Yusko, a combination of positive factors, including the expectation of a Bitcoin halving, the transition of central banks to a more flexible monetary policy, and the US Federal Reserve’s prudent position on the key rate, create favorable macroeconomic conditions for new rise of the crypto market. The head of Morgan Creek expects crypto and the next bull market could start as early as the second quarter of 2023.
Although the Fed is not going to cut interest rates anytime soon, Yusko notes that markets often anticipate decisions by the US Federal Reserve.. Even a slowdown or pause in raising interest rates is seen as a signal of the inevitability of changes leading to a positive trend in all risky assets, including cryptocurrencies.
“It is likely that with its decision, the Fed is signaling to the market that the situation is under the control of the regulator.. This can be interpreted as “we will cut the rate”, and then risky assets will explode again,” Yusko said.
The upcoming Bitcoin halving is another factor that Yusko is expected to drive bullish sentiment in the market and another upward rally of the first cryptocurrency.. According to him, the market traditionally reacts to an event in about nine months, which would mark the beginning of the crypto-flight as early as the second quarter of this year.
Yesterday, a detailed analysis of the current situation in the cryptocurrency market was released on the Bits.media portal.. It also presents the expectations and forecasts of leading experts on the policy of the Fed and the outlook for the industry in the near future.