CoinShares: BTC price again depends on US Federal Reserve policy
Now that the hype around the Bitcoin ETF has died down, the price trajectory of the leading crypto asset is once again in the hands of the Federal Reserve, according to CoinShares analysts.
A careful study of trading over the past 40 days showed a high correlation between the Bitcoin price and expectations for the interest rate that will be announced in June. A similar trend was observed in 2023,” James Butterfill, head of research at CoinShares, wrote in the report.
According to CoinShares experts, if the US Federal Reserve lowers interest rates this year, this will have a positive impact on the Bitcoin rate.
However, according to CME Fedwatch, which assesses the likelihood of a policy change by the US Federal Reserve, the market is confident that interest rates will remain unchanged in June.
A potential decline is only possible in the fourth quarter of this year. In addition, a number of indicators fuel experts’ concerns about stagflation and further growth in rates.
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