Experts debate recent changes in the Bitcoin market, including significant open interest shifts and the influence of Fed policy.
Overview of Bitcoin Market
CryptoQuant CEO Ki Young Ju recently changed his outlook on the Bitcoin market, stating that the bull cycle is over and Bitcoin could face bearish or sideways movement for the next six to twelve months. Previously, he was confident in a slow bull cycle. However, not all analysts share this pessimism. Some opinions supporting a potential Bitcoin recovery include the increase in global M2 money supply and historical price correlations.
Bitcoin's $12 Billion Open Interest Shakeout
Bitcoin recently experienced a $12 billion open interest shakeout, which some see as a necessary catalyst for recovery. While others view it as a natural market reset, some experts argue it could set the stage for the next cryptocurrency rally.
Analyst Predictions and Fed's Role
Analysts are confident that the Fed's decision to end the quantitative tightening program by May could spark another crypto bull market. The tightening policy, in place since June 2022, raises concerns amid macroeconomic shifts.
As markets anticipate the Fed's upcoming decisions, experts remain divided between pessimists and optimists regarding Bitcoin's future. Market conditions and macroeconomic policy will play significant roles in determining the direction of cryptocurrency.
