Bitcoin may face a correction in the medium term due to the rising inflation rate in the US. About it stated QCP Capital experts.
In their forecast, analysts pointed to a reduction in capital inflows into the spot Bitcoin ETF sector. According to them, the indicator’s transition to the “red” zone resulted in an “inadequate” drawdown in the asset price below $61,000.
In addition, US inflation remains above the Fed's target level of 2%. Moreover, the figure increased in February 2024.
QCP Capital experts believe that against this backdrop, the Fed Council may refuse previously announced plan to reduce interest rates three times in 2024.
At the same time, QCP Capital experts noted that the bull market is not over yet. They believe that Bitcoin can update its all-time high immediately after the halving.
According to experts, in a favorable scenario, the Fed will move to lower interest rates in early summer 2024. But, according to QCP Capital's forecast, the regulator may postpone this decision due to high inflation.
Source: Cryptocurrency
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