Crypto's Struggle: Fed Policy, Liquidity, & Market Cycles
The cryptocurrency market has recently navigated a turbulent path, experiencing renewed challenges despite a brief period of optimism. This fleeting resurgence was initially spurred by the US Federal Reserve's (Fed) decision to cut interest rates, which temporarily propelled Bitcoin (BTC) upwards, nearing the $120,000 threshold. However, this week has seen a notable reversal, with Bitcoin retreating to the lower bounds of its established consolidation range, now fluctuating predominantly between $110,000 and $115,000. This current downturn in the digital asset space, occurring as traditional markets like gold and the S&P500 achieve new all-time highs, presents a puzzling contrast for investors. Analysts from The Bull Theory have meticulously examined the situation, identifying several intertwined factors that appear to be contributing significantly to this divergence and the prevailing bearish sentiment in the crypto arena. The Impact of Fed Policies and Quantitative Tightening…
