Stay With Bitcoin, Says 10x Research After Fed Predicts Only One Rate Cut By 2024
ETF inflows resumed on Wednesday as US inflation was lower than expected.
10x Research continues to defend #bitcoin even as the top cryptocurrency trades under pressure following aggressive interest rate projections from the Federal Reserve.
On Wednesday, the US central bank left the benchmark borrowing cost unchanged in the 5.25%-5.5% range as expected. However, he predicted just one rate cut this year, down from three in March. Given the softer-than-expected CPI release earlier in the day, the Fed's new rate prediction likely spooked markets, sending bitcoin lower.
Still, 10x Research maintains a positive outlook on bitcoin and expresses confidence that the rally will resume soon.
"Our recommendation remains unchanged: stick with the winners (#BTC ) and avoid others (like #Ethereum ). Our previous analysis has shown that a lower CPI tends to lift Bitcoin prices, and we anticipate this trend to continue," Markus Thielen, founder of 10x Research, said in a note to clients on Thursday.
According to Thielen, slowing inflation has historically attracted huge inflows into US-listed Bitcoin Spot ETFs.
Provisional data from Farside Investors shows ETFs raked in $100 million on Wednesday, breaking a two-day streak of capital outflows.
Thielen explained that #ETF flows dried up after debuting on January 11 as the December CPI rose, weakening the case for Fed rate cuts. Flows resumed in February, driving bitcoin higher. .
Thielen expects the Federal Reserve to signal further rate cuts later this year, as inflation has already peaked.
