Currently, the digital asset market is not up to par, partly due to uncertainty about the US Federal Reserve's monetary policy, which has a negative impact on cryptocurrencies. In addition, the positive effects of the Bitcoin halving and the launch of spot BTC ETFs have already faded.
According to analysts, the crypto market needs fresh drivers. James Butterfill, head of research at CoinShares, noted a high correlation between the price of Bitcoin and market expectations regarding future interest rates, a situation reminiscent of 2023.
Ahead of the Fed’s May meeting, BTC plunged below $57,000. After the regulator announced its decision to keep interest rates steady, the first cryptocurrency surged above $60,000, the crypto firm pointed out.
Experts at CoinShares are confident that the leading cryptocurrency could see explosive gains if the US central bank cuts the key rate in 2024.
Earlier, analysts at Standard Chartered Bank said that BTC had hit a local low of $56,500. They also predicted that the digital asset could reach a staggering $200,000 by the end of 2025.
