The price of Bitcoin remains below $64,000, with no sign of a reversal yet. Concerns among investors have led some to shift to other altcoins despite experiencing losses. As worries about the market downturn persist, how are QCP analysts interpreting the current situation?

Commentary by Cryptocurrency Analysts

In the first quarter of 2024, the US GDP saw a growth of 1.6%. Although the PCE data was negative, employment numbers remained strong. Inflation has been a persistent issue, causing doubts about the Federal Reserve's credibility as they dismiss it as temporary. The hope for a smooth economic landing is fading away, raising concerns among QCP analysts.

Worrying signs from the US, such as weaker than expected GDP data and inflation problems, have impacted the markets. Current market expectations now include a single interest rate cut for 2024, a far cry from the initial projections at the beginning of the year.

Potential Cryptocurrency Decline

The optimism seen in March is dwindling as the Fed's expected rate cuts fall short. Slower interest rate reductions could trigger larger cryptocurrency declines. Analysts suggest considering selling opportunities at short-term highs like $64,000.

Fiscal policy may take precedence over monetary policy, utilizing the significant funds held in the US Treasury General Account (TGA), potentially injecting a trillion dollars into the financial system. Additionally, the Quarterly Refunding Announcement on May 1st might lead to increased short-term US bond issuances, boosting liquidity.

Despite recent macroeconomic fluctuations, volatility and funding have decreased. It is recommended to set up cost-effective strategies and observe market developments closely.

The original post can be found on COINTURK NEWS: Insights on Cryptocurrency Trends and Economic Indicators