The founders of the crypto analysis platform Glassnode, Jan Happel and Yann Allemann, assert that the Federal Reserve’s strict policies have led to a decline in Bitcoin prices, yet they foresee a potential recovery for BTC. They communicated to their followers on social media platform X that the Fed’s anticipated fewer interest rate cuts next year have contributed to Bitcoin’s dip below $100,000.
Fed Policies and Bitcoin Prices
The founders noted that the net position change metric, which tracks the 30-day supply held on crypto exchanges, continues to signal positive trends. This metric indicates that the decreasing amount of Bitcoin on exchanges is having a favorable effect on the market. Happel and Allemann commented that Fed Chair Jerome Powell’s stern tone caused Bitcoin to drop below $100,000, but they believe Bitcoin could swiftly rebound to this threshold. They also mentioned that the withdrawal rates of Bitcoin from exchanges have reached yearly highs and that a wave of accumulation is ongoing in November, increasing the likelihood of a recovery.
Bitcoin Dominance and Altcoins
They indicated that the Bitcoin Dominance Rate (BTC.D), which reflects Bitcoin’s market value compared to other cryptocurrencies, may show whether altcoins will surpass Bitcoin in the coming days. Currently, the BTC.D rate stands at 58.44%.
As of the time of writing, Bitcoin is trading at around $96,450, having lost 5.2% in value over the last 24 hours. Experts highlight that the record-high exit rates of Bitcoin from exchanges could positively impact its future performance. Recent trends indicate that alongside the decrease of Bitcoin on exchanges, when combined with overall market dynamics, Bitcoin may enter a recovery process. However, given the continuously fluctuating market conditions, it is advised for traders to remain cautious.
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Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
