Why did you fall? Bitcoin As bulls return to the market, BeInCrypto spoke with Gracie Chen, CEO of popular cryptocurrency exchange Bitget.
What happened in the cryptocurrency market
Gracie Chen suggests looking at whether the bull market is over. She believes that this question can be answered by analyzing a variety of factors. Our interlocutor recommends first studying the position of the major stock indices. The S&P 500, Nasdaq and Dow Jones Industrial Average continue to trend upward, frequently setting new highs, which is encouraging.
Gracie Chen also drew attention to macroeconomic factors. Inflation remains high. Although the European Central Bank and the Bank of Canada have recently cut interest rates, this has led to higher inflation expectations.
Fed Chairman Jerome Powell said the labor market remains strong but not overheated. A rate cut is not advisable until the Fed is more confident that inflation will reach 2%. Continued monitoring of the situation and a firm commitment to the 2% inflation target are needed to maintain stable long-term inflation expectations. ”
According to our interlocutor, an important factor is market sentiment. Gracie noted that the cryptocurrency market has been recently affected by the following news: German Government Permanently Sells Bitcoin start Mt. Gox pays creditors And miners selling bitcoins.
“This has heightened risk aversion in the market, causing BTC to drop by more than 20% and altcoin prices to fall sharply. Overall, the sentiment in the cryptocurrency market is pessimistic,” our interlocutor concluded.
To complete the picture, Grace Chen turned to the historical perspective. Interviewees pointed out that the market’s significant adjustments are often influenced by factors such as regulatory policies, macroeconomic conditions and market sentiment.
“The end of a bull market typically coincides with slower economic growth, higher interest rates and shrinking balance sheets,” Gracey said. He added that there was no clear signal yet on when interest rates would be cut, but there was no sign of a rate hike either.
According to our interlocutors, the continued growth of the main stock indices reflects the positive sentiment of investors. BTC-ETF The cryptocurrency market is on the rise, however, recent news of large institutions, including the German government, selling Bitcoin has led to a significant increase in risk aversion.
How is the result?
Grace Chen said the bull market is likely not over yet. The market outlook after the end of quantitative easing remains optimistic. At the same time, our interlocutor said that investors need to pay close attention to changes in market fundamentals and develop smart investment strategies to cope with potential fluctuations