According to Jan Happel and Yann Allemann, co-founders of the crypto analysis platform Glassnode, recent Federal Reserve policies have negatively impacted Bitcoin prices. However, they predict a possible rebound for BTC due to anticipated interest rate adjustments. Their insights, shared on social media platform X, suggest that Bitcoin’s recent drop below the $100,000 mark is linked to the Fed’s expected monetary strategies for the coming year.
How Are Fed Policies Affecting Bitcoin?
The duo points out that a key metric measuring net position changes indicates an encouraging trend. This metric shows a decline in Bitcoin held on exchanges, which they believe positively influences the market.
Happel and Allemann noted that Fed Chair Jerome Powell’s firm stance contributed to Bitcoin’s decline, but they hold optimism for a quick recovery to the $100,000 level. They also reported record levels of Bitcoin withdrawals from exchanges, highlighting an ongoing accumulation phase that could bolster recovery prospects.
Is Bitcoin Dominance at a Turning Point?
The founders emphasized the significance of Bitcoin’s Dominance Rate (BTC.D), currently at 58.44%, in determining the performance of altcoins relative to Bitcoin. A rise in BTC.D could signify a rally focused on Bitcoin, whereas a decline may pave the way for altcoin gains.
- Record-high Bitcoin withdrawal rates from exchanges indicate strong accumulation.
- Current market metrics suggest Bitcoin may be on the verge of recovery.
- Traders are advised to stay vigilant due to ongoing market volatility.
As of now, Bitcoin is trading around $96,450, reflecting a 5.2% decrease in value over the past day. Experts insist that the notable outflow of Bitcoin from exchanges is likely to have a positive impact on its future outlook.