Experts from the analytical company Glassnode believe that bitcoin is trading below $20,000 due to strong pressure from the US Federal Reserve and an unfavorable macroeconomic climate.
According to Glassnode co-founders Jan Happel and Yann Allemann, the tough stance of the US Federal Reserve System (FRS) neutralizes all important positive developments in the crypto industry. As a result, Bitcoin (BTC), facing increased risk, maintains a bearish trend.
Glassnode experts note that both monetary policy and regulatory policy put strong pressure on cryptocurrencies. Against the background of an unfavorable macroeconomic situation, the growing volume of BTC during a bearish trend may portend big losses for bitcoin holders.
“Whenever spot volume supports a downtrend, it tends to extend into the near future and significant buying pressure is required to reverse,” Happel and Allemann said.
Analysts stressed that traders and speculators are showing signs of distrust in BTC. The ratio of the futures market to the spot market is well below one, and after an unexpected 50 basis point rate hike in June, it has been declining steadily.
“Based on Fed Chairman Jerome Powell’s prediction of the next 75 basis point lending rate hike, previous statements from the Federal Open Market Committee (FOMC) and the state of the financial system, bitcoin is likely to continue trading in the $17,000 to $25 range. 000,” analysts predict.
Glassnode executives note that although the spot market has recorded an increase in trading volume, there is bearish pressure in the options and futures market.
If the forecasts of Glassnode analysts do not inspire optimism, then according to the former CEO of MicroStrategy Michael Saylor (Michael Saylor), in four years the price of bitcoin will recover to $69,000.
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