10x Research advises investors to stick with Bitcoin and avoid Ethereum after the Fed predicts only one rate cut for 2024.
10x Research Recommends Stick to Bitcoin, Avoid Ethereum
This guidance comes amid renewed ETF inflows and lower-than-expected U.S. inflation.
The Federal Reserve on Wednesday left its benchmark borrowing cost steady at 5.25%-5.5%, as expected.
However, the central bank revised its forecast for three interest rate cuts in March to only one interest rate cut this year.
This hawkish stance, combined with lower-than-expected CPI data, likely unsettled markets and led to a decline in Bitcoin's price.
Bitcoin, the leading cryptocurrency by market value, dropped to $66,050 after the FED's interest rate projection.
Despite this, 10x Research maintains a positive outlook on Bitcoin and expects the rally to revive.
10x Research founder Markus Thielen said in a note to clients on Thursday. “Our advice remains unchanged: stick with the winners (Bitcoin) and avoid the others (like Ethereum).
“Our previous analysis showed that a lower CPI figure tends to push Bitcoin prices higher, and we predict this trend will continue,” he said.
The US consumer price inflation rate remained flat in May, missing the consensus forecast for a 0.1% increase and falling to the 0.3% rate in April. The annual rate was 3.3%, in line with the forecasts and a decrease compared to 3.4% in April.
Thielen noted that the slowdown in inflation has historically driven significant inflows into U.S.-listed spot Bitcoin ETFs.
Provisional data from Farside Investors showed these ETFs raised $100 million on Wednesday, ending a two-day breakout streak.
*This is not investment advice.
