As the United States continues to approve Bitcoin spot ETFs, more and more funds are entering the market. Undoubtedly, these institutions have made a lot of profits.
However, the bull market for Bitcoin cannot last forever:
The overall economic performance in the United States is struggling, and the issue of inflation has not been fundamentally resolved. The Federal Reserve is likely to postpone interest rate cuts. Continued interest rate hikes could lead to a sharp decline in Bitcoin prices.
The current attitude of the United States towards Bitcoin remains delicate, and approving a few ETFs is not a particularly significant positive. Nevertheless, it remains a key factor driving the rise in Bitcoin prices, and I believe the market's imagination is overly optimistic. For any country, it is not yet time to compete for the pricing power of Bitcoin. Therefore, when the delicate attitude shifts, the market may panic, causing a decline in Bitcoin prices.
The news of Bitcoin's halving has fueled a continuous rise in its price. However, the problem is that this information has been known for a long time and has already driven the market higher. It should not be a reason to continue pushing prices. When Bitcoin's halving actually occurs, the price of Bitcoin may decline.
I believe the current market is overly irrational, with a significant influx of funds leading to a continuous rise in Bitcoin prices. However, I think we are not far from a sharp decline in prices. The current market risks are substantial, and there are ample reasons for a downturn.
Many false statements here. Such as…. Leaving interest rates as they are, does not mean hikes. It means the economy is doing so well that rates cuts would overheat it, and cause damage. The bitcoin halving is always baked into the price at all times. It has driven the vale of bitcoin since 2009. Nothing ever happens in the market because the event happened, There is no reason to assume otherwise now.
yangyangyyds
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@unbeldi You misunderstood the relationship between Bitcoin, interest rates, and the economy. Bitcoin is not like stocks or companies; only by stopping interest rate hikes can money be diverted into Bitcoin. Don't think Bitcoin is special; decentralization is impossible, and the only key to its rise is institutional funding.
unbeldi
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@yangyangyyds, what I misunderstand you don’t know, and nobody really knows the real effect of interest rates on Bitcoin, since the rates have been near zero for most of its existence. And since the late 2010s the rate didn’t seem to very important as adoption proliferated. Institutional funding is always highly influential when it happens.