Easing bearish pressure in the crypto market could foster a better trading environment: Coinbase analysts

Analysts at leading US crypto exchange Coinbase say easing downward pressure could lead to healthier market conditions for investors.

In a new analysis, Coinbase says many factors dampening Bitcoin (BTC) and the digital asset industry in general – such as the liquidations of bankrupt crypto exchange FTX and the financial woes of crypto lender Celsius – are clarifying what the Paves way for better trading environment.

“In our view, many technical factors putting pressure on Bitcoin specifically (and cryptocurrencies in general) are beginning to be exhausted. This is evidenced by the liquidations at FTX (e.g. the divestment of their Grayscale Bitcoin Trust shares), as well as the emergence of some large, defunct companies from bankruptcy.

In fact, net inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) averaged more than $200 million per day last week (bringing total net inflows since Jan. 11 to $1.46 billion). ), with a healthy daily volume of around $1.35 billion.

Therefore, we expect macroeconomic factors to become more important for the digital asset class in the coming weeks, which could have a positive impact on performance. In the US, the likelihood of a soft landing appears to be higher than it was a few months ago, as the economy is said to be making minimal trade-offs between activity and inflation.”

Additionally, Coinbase believes that a combination of the Federal Reserve's easing of restrictive monetary policy in May and the upcoming BTC halving in April will lead to an overall positive development for crypto assets in general.

Bitcoin's halving occurs every four years, when miners' rewards are halved.

“We expect US interest rate cuts to begin in May and quantitative tightening to be unwinded soon after, coinciding with idiosyncratic events such as the Bitcoin halving and creating a positive trajectory for the asset class in general.”

Don't miss a thing – Subscribe to receive email alerts straight to your inbox

Check price action

Follow us on Twitter, Facebook and Telegram

Surf the Daily Hodl Mix

Check out the latest headlines
&nbsp

Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should conduct their due diligence before making any risky investments in Bitcoin, cryptocurrencies or digital assets. Please note that your transfers and transactions are at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated image: Midjourney

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers