While Bitcoin rose above $38,000 many times in November, it failed to hold this level.
However, Bitfinex analysts think in their recent report that there may be more capital inflows to Bitcoin and prices may increase in the short term.
According to The Block, analysts said that the reason behind these positive thoughts is the high probability that the FED will keep interest rates constant in December and the recent dovish statements of FED member Christopher Waller.
“If the US Federal Reserve leaves interest rates constant at its meeting on December 13, there may be more capital inflow to Bitcoin.
“When the expectations regarding interest rates in December are combined with the recent moderate statements of FED member Christopher Waller, optimism towards Bitcoin and cryptocurrencies is increasing.”
Because Waller said in his statement that he was confident that the current monetary policy was in a good position to slow down economic tightening and return inflation to 2%, and signaled that if inflation rates continue this way, there may be interest rate cuts in 2024.
In addition to his positive statements, Waller also warned that inflation was still high.
Pointing out that Waller's warning is also important for the crypto industry, he said, “There is uncertainty about whether the slowdown in inflation will continue or not. Therefore, while leaving interest rates constant may increase Bitcoin and altcoin prices in the short term, the long-term direction depends on a number of economic factors and the general impact of monetary policy.” “It will continue to depend on its direction.” said.
Bitfinex analysts recently said that interest rate cuts are priced from May 2024.
*This is not investment advice.
