YEREVAN (CoinChapter.com) — Bitcoin (BTC) rose to $69,210, its highest level in recent history. The pump was priced at approximately $67,230 as of March 8, following a period of adjustment. Then a question arises: Is this $67,000-69,000 range enough to accumulate Bitcoin? Or is this strategy too risky to bet on, given the enormous risk involved in purchasing assets at local top prices?
Grayscale does not like buying Bitcoin at local highs.
Analysts at Grayscale Investment, a New York-based investment management firm, argue against buying Bitcoin at its current high price. At the heart of their cautious outlook are chilling macroeconomic issues.
In a recent report, Grayscale noted that despite supportive fundamentals such as increased ETF inflows and halvings, rising inflation rates could limit Bitcoin’s upside prospects. extract:
“If inflation continues to remain high, Fed officials may consider delaying rate cuts until the end of the year or until 2025. In general, rising U.S. interest rates are likely to be positive for the dollar and could be negative for Bitcoin.”
This statement comes after the Federal Reserve’s latest interest rate outlook. The U.S. central bank wants to see further progress in lowering inflation before introducing interest rate cuts. As a result, the CME FedWatch Tool now predicts rates will remain flat at 525-550 basis points until at least July 2024.
As a result, Bitcoin is at risk of an extreme correction in the coming months.
The US inflation rate in January was 3.1%. This figure is significantly higher than the forecast of 2.9%, but is better than the previous month’s 3.4%. This outcome shifted expectations of a rate cut from May to June, but had limited impact on the Bitcoin price.
30% BTC Price Crash What’s Next?
In early February, PlanB, the creator of the popular Bitcoin Stock-to-Flow model, hinted at multiple 30% price corrections in a bull market, if history is any indication.
He pointed out that the BTC price could rise for 10 months but continue to neutralize overbought sentiment through a sharp 30% correction.
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