The indicator’s transition to the “red” zone caused the price of the first cryptocurrency to drop below $61,000. Additional pressure on Bitcoin is exerted by inflation, which is above the US Federal Reserve System (FRS) target level of 2%.
QCP Capital experts believe that against this backdrop, the Fed may abandon its plan to cut interest rates three times in 2024. In their opinion, high inflation could force the Fed to move to just two interest rate cuts this year.
At the same time, analysts note that the bullish trend in the cryptocurrency market has not yet ended and the Bitcoin rate may update its maximum immediately after the halving in April of this year.
According to experts, in a favorable scenario, the Fed will move to lower interest rates in the early summer of 2024, but the regulator may postpone this decision due to high inflation.
Earlier, analysts at CryptoQuant noted that over the past three days, the rate of the first cryptocurrency has rolled back from a record price of $73,800 to $60,000. However, in their opinion, this is only a temporary correction.
Source: Bits
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