One bank after another scraps Fed rate-cut forecasts. Bitcoin doesn't care.
Despite banks abandoning Fed rate-cut predictions, Bitcoin has surpassed $80,000, indicating reduced sensitivity to interest rate changes.Summary
Major financial institutions, including Barclays and JPMorgan, are now forecasting that the Federal Reserve will maintain current interest rates throughout the year, abandoning earlier predictions of at least two rate cuts. This shift is attributed to persistent inflation, partly driven by geopolitical tensions impacting energy prices. Historically, a 'higher-for-longer' interest rate environment would negatively affect risk assets like Bitcoin. However, Bitcoin has recently surged past the $80,000 mark, suggesting it may be decoupling from traditional macro influences. Some analysts believe Bitcoin is increasingly viewed as an inflation hedge, supported by consistent inflows into spot ETFs. Others attribute the current rally more to the strength of the broader equity market. Technical indicators, such as the 200-day SMA near $83,430, and key resistance levels around $81,500 and $84,000, are being closely watched to guide near-term price action. The cryptocurrency market sentiment is at a midpoint, indicating a potential turning point.
(Source：CoinDesk)