In recent weeks, volatility has characterized the cryptocurrency markets, yet Bitfinex analyst Jag Kooner forecasts potential growth for Bitcoin and Ethereum. He attributes this to the current macroeconomic situation.
Macroeconomic Context and Its Impact
Kooner asserts that the present macroeconomic environment is favorable for digital assets. He highlighted the importance of Federal Reserve guidance and consumer spending data for traders. The Fed is under pressure from potential inflationary effects of tariffs, which may keep interest rates at their current level.
Institutional Investment in Cryptocurrencies
Amid economic uncertainty, investors are seeking assets to protect their wealth. Kooner pointed out that there have been over $1 billion net inflows into Bitcoin and Ethereum ETFs in the past week, signaling strong interest from institutional investors.
Outlook for Bitcoin and Ethereum Growth
Kooner suggests that Ethereum may drive the altcoin rally, noting that ETH was up 6% against BTC. He emphasizes that this growth is driven not by retail demand, but by institutional interest. "This is the beginning of what might become Phase 3 of the crypto bull cycle," Kooner stated.
In conclusion, the further growth prospects for Bitcoin and Ethereum depend on the macroeconomic environment. Favorable data from the Federal Reserve and consumer expenditure indicators could trigger a new wave of growth in the cryptocurrency market.
