The world's largest crypto asset management company shared its new Bitcoin forecast.
According to the latest report from Grayscale Research, one of the leading organizations in the cryptocurrency market, the value of Bitcoin and the overall crypto market capitalization could rise in the coming months. The research firm bases this prediction on the halving event and macro developments. The halving event reduces Bitcoin's supply, potentially making the cryptocurrency scarcer and more valuable in the long run.
The macroeconomic outlook will also influence.
According to the report, the price of Bitcoin and the total market capitalization of cryptocurrencies could further increase if the macroeconomic outlook remains supportive. However, this expectation will be shaped by the macroeconomic outlook and the policies of the Federal Reserve.
Experts suggest that the price of Bitcoin and the crypto market capitalization could rise if the overall economic outlook remains supportive. The 15% drop in Bitcoin price and slight decrease in the overall crypto market capitalization in April, despite Bitcoin and Ethereum outperforming other crypto sector indices, indicate that the rally may need to pause for a while.
The Bitcoin bull market took a break.
Experts suggest that Bitcoin’s bull market cycle could take a pause due to changes in expectations regarding the Federal Reserve’s monetary policy. Uncertainty surrounding the Fed’s interest rate cuts has strengthened the US dollar and impacted Bitcoin prices. However, according to the report, the US economy is prepared for a soft landing.
Technical evaluation criteria for Bitcoin also present a similar outlook. Grayscale Research states, “If the macro outlook generally remains unchanged, Bitcoin’s price and crypto market capitalization could rise again for the rest of the year.”
What will the US and the Fed bring to Bitcoin?
Federal Reserve policies could also influence the price of Bitcoin. Neel Kashkari, a member of the Fed, noted that it is more likely to keep interest rates unchanged for an extended period. However, he mentioned that they would consider cutting rates if unemployment rises. Kashkari previously anticipated two rate cuts by 2024 but now suggests that rates could be cut once or not at all.
The report also indicates progress on the stablecoin regulation front in the US. The market capitalization of stablecoins is growing, with USDC gaining market share from Tether. Regulatory clarity is seen as a positive development for the sector.
Grayscale’s report also touches on the potential effects of a second Trump administration on the US dollar and Bitcoin. It references Standard Chartered’s prediction that Bitcoin could benefit from a potential Trump election victory.
