- Matthew Sigel's Prediction
- Market Reaction to Fed's Rate Cut
- Bitcoin's Historical Correlation with Money Growth
Matthew Sigel, head of digital assets at financial behemoth BlackRock, has predicted strong performance for Bitcoin in the fourth quarter.
Matthew Sigel's Prediction
Matthew Sigel stated that he is more bullish on the largest cryptocurrency following the recent move by the Federal Reserve. Sigel believes this decision will positively affect Bitcoin's value.
Market Reaction to Fed's Rate Cut
As previously reported, the Fed opted for a larger-than-expected rate cut of 50 basis points, surprising the market as both analysts and bettors had expected a 25-basis point cut. Following this announcement, Bitcoin's price surged sharply, reaching an intraday high of $63,882 on the Bitstamp exchange.
Bitcoin's Historical Correlation with Money Growth
Matthew Sigel pointed out that Bitcoin has historically had a tight positive correlation with money growth. BlackRock recently published a new white paper highlighting Bitcoin as a portfolio diversifier and a hedge against various macro risk factors. The launch of the Bitcoin ETF in early 2024 was a significant milestone for the company.
In conclusion, according to Matthew Sigel's forecast, Bitcoin may perform strongly in the fourth quarter considering the Fed's decisions and the cryptocurrency's historical correlation with money growth.
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