Henrik Zeberg has drawn attention to a crucial insight that has the potential to have a major impact on Bitcoin. Zeberg suggests that instead of focusing only on the Federal Reserve’s interest rate decisions, we should consider the departure of market returns. Historically, the Federal Reserve has followed market returns rather than setting them.
Henrik Zeberg has drawn attention to a crucial insight that has the potential to have a major impact on Bitcoin. Zeberg suggests that instead of focusing only on the Federal Reserve’s interest rate decisions, we should consider the departure of market returns. Historically, the Federal Reserve has followed market returns rather than setting them.
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Super Bearish RSI Structure: Significantly more bearish than before the financial crisis, the Relative Strength Index (RSI) is currently showing a serious lack of optimism in the market. This can lead to major changes in investment and financial strategy.
BTC/USD Chart by TradingView -
Two-Year Yields Skyrocketing: Zeberg believes two-year yields will decline sharply. The Federal Reserve is expected to continue this downward trend in yields, despite the current inflation rate. This is significant because it suggests a possible change in monetary policy that could be advantageous for Bitcoin.
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Approaching Recession: Typically, the Federal Reserve will lower interest rates to boost the economy as a recession approaches. Zeberg notes that there is typically a five- to six-month window before a recession begins when the Federal Reserve begins cutting rates. For Bitcoin investors, this could be a tactical advantage during a crucial period for financial markets.
How can Bitcoin benefit?
Bitcoin is a popular store of value during uncertain economic times and potential currency devaluations. Demand and prices for Bitcoin may increase as a result of investors turning to it as an alternative to conventional assets.
Inflation protection is one of the main uses of Bitcoin. Inflationary pressures may intensify as the Federal Reserve lowers rates in an effort to boost the economy.
Alex DovbnyaDecentralized finance (DeFi) is becoming increasingly popular as traditional financial systems become more stressed.
The rise in speculative investment is often a result of market instability. Due to its history of strong price fluctuations, Bitcoin attracts traders and investors hoping to make a quick buck or simply gain more exposure to volatility.
