Although Bitcoin, which started the new week with a decline, rose above $ 43,000 after the FED decision, it was not successful in holding on to these levels.
While BTC fell below $ 42,000 again in the evening, investors are wondering at what level BTC will close at the end of 2023 and whether the rise experienced last week will continue.
At this point, a new BTC prediction came from Deribit analysts.
Analysts stated that Bitcoin will probably remain at its current levels until the end of 2023 and explained the reasons for this.
Deribit analysts, who first stated that there was no big rise in Bitcoin despite the dovish statements of the FED, said that the second reason was that Tether reduced token printing.
“Despite our expectation that Fed Chair Powell would take a dovish tone at this week's FOMC meeting, Bitcoin failed to recover.
This suggests that Bitcoin is tired and, as we noted earlier this week, the chances of another rally before January are slim.
Apart from the FED, Tether's reduction of token printing also affects the upward momentum of BTC. Because the constant printing of Tether was a clear indication that corporate players were moving money from fiat money to crypto. The result was a Bitcoin rally that surprised almost everyone in the last two months.
However, Tether's token issuance dropped from $1.6 billion weekly to $0.4 billion. This caused the inflows and the rise of Bitcoin to stop.”
Analysts cited the possibility of delaying spot Bitcoin ETF approval until March as the final reason why they do not expect a rally in BTC until January. Analysts said, “Although we welcome another postponement of spot Bitcoin ETFs until March, there is always the possibility of approval of ETFs.” said.
Bitcoin continues to trade at $42,030 at the time of writing.
#BTC likely range-bound till year-end; no rally despite expected dovish Fed tone.
Halt in Tether minting affects bullish momentum.
Anticipating Bitcoin Spot ETF delay till March; CME Bitcoin futures premiums adjusting.
Read article from @10x_Research ⬇https://t.co/11lfxv0kfg
— Deribit Insights (@DeribitInsights) December 15, 2023
*This is not investment advice.
