{"id":11258,"date":"2024-03-03T14:47:03","date_gmt":"2024-03-03T12:47:03","guid":{"rendered":"https:\/\/forklog.com\/en\/grayscale-identifies-inflation-and-feds-high-rates-as-bitcoin-barriers\/"},"modified":"2024-03-03T14:47:03","modified_gmt":"2024-03-03T12:47:03","slug":"grayscale-identifies-inflation-and-feds-high-rates-as-bitcoin-barriers","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/grayscale-identifies-inflation-and-feds-high-rates-as-bitcoin-barriers\/","title":{"rendered":"Grayscale Identifies Inflation and Fed&#8217;s High Rates as Bitcoin Barriers"},"content":{"rendered":"<p>Macroeconomic factors may pose significant obstacles to the short-term growth of the leading cryptocurrency&#8217;s value, according to Grayscale analysts.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Read the full analysis from <a href=\"https:\/\/twitter.com\/LowBeta_?ref_src=twsrc%5Etfw\">@LowBeta_<\/a> and the Grayscale team: <a href=\"https:\/\/t.co\/AkdcO4AxjX\">https:\/\/t.co\/AkdcO4AxjX<\/a> <a href=\"https:\/\/t.co\/CUrDvuwwwh\">pic.twitter.com\/CUrDvuwwwh<\/a><\/p>\n<p>\u2014 Grayscale (@Grayscale) <a href=\"https:\/\/twitter.com\/Grayscale\/status\/1763625983150899316?ref_src=twsrc%5Etfw\">March 1, 2024<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\n<cite>&#8220;If inflation remains persistently high, officials at the <span data-descr=\"Federal Reserve System of the USA\" class=\"old_tooltip\">Fed<\/span> may delay reducing the key rate until later this year or into 2025. A higher rate is likely to positively impact the US dollar and negatively affect bitcoin,&#8221; the report states.<\/cite><\/p><\/blockquote>\n<p>Experts noted that the impact of macroeconomic factors, such as the Fed&#8217;s monetary policy and the state of the economy, on the digital asset market is an important lesson from the previous crypto cycle.<\/p>\n<p>Grayscale believes that bitcoin&#8217;s growth reflects a significant influx of funds into spot ETFs based on the leading cryptocurrency and expectations of the upcoming halving.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\n<cite>&#8220;It is most likely that US inflation will continue to decline, increasing the likelihood of a Fed rate cut. However, crypto investors should monitor upcoming inflation reports on March 12 and 14, as well as updated guidance on the Fed&#8217;s course at the next meeting on March 20,&#8221; the report states.<\/cite><\/p><\/blockquote>\n<p>In January, the US inflation index <a href=\"https:\/\/forklog.com\/en\/news\/us-inflation-exceeds-forecasts-bitcoin-declines\">stood at 3.1%<\/a>. The figure exceeded the forecast of 2.9% but was better than the previous month&#8217;s 3.4%. This result led to the postponement of <a href=\"https:\/\/forklog.com\/en\/news\/bitcoin-unfazed-by-diminished-prospects-of-fed-policy-easing\">rate cut expectations from May to June<\/a>, but had limited impact on bitcoin.<\/p>\n<p>Earlier, Galaxy Digital CEO Mike Novogratz suggested a correction of the leading cryptocurrency before reaching a new all-time high. He also noted the high level of leverage in the industry.<\/p>\n<p>Popular blogger and analyst PlanB has announced the start of a bull market.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Macroeconomic factors may pose significant obstacles to the short-term growth of the leading cryptocurrency&#8217;s value, according to Grayscale analysts. Read the full analysis from @LowBeta_ and the Grayscale team: https:\/\/t.co\/AkdcO4AxjX pic.twitter.com\/CUrDvuwwwh \u2014 Grayscale (@Grayscale) March 1, 2024 &#8220;If inflation remains persistently high, officials at the Fed may delay reducing the key rate until later this [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":11257,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[943,1224],"class_list":["post-11258","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-grayscale-investments","tag-macroeconomics"],"aioseo_notices":[],"amp_enabled":true,"views":"11","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/11258","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=11258"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/11258\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/11257"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=11258"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=11258"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=11258"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}