Bitwise warns: BTC could face 'painful decline' in the coming weeks but also a good opportunity to catch the bottom

After the Fed announced that it would expect to cut interest rates next year, the BTC and encryption markets began to show a downward trend, and there is currently no sign of stopping the decline and recovering. In response, Andre Dragosch, research director of Bitwise Europe, said that BTC may fall further in the coming weeks. (Synopsis: BTCtechnical indicatorbullish: VIX panic index hints at bottoming, Fibonacci predicts to break $160,000 in February next year) (Background added: BTCprice drops 96,000, 300,000 Get Liquidated billion dollars!) Analyst: Fed will slow down interest rate cuts will not change BTC's upward trend) After the US Federal Reserve (Fed) announced on the 20th that Chairman Powell announced that "next year is expected to reduce the rate cut", BTC and the encryption market began to show a downward trend, BTC from the 20-day high of $102,800 all the way down, the lowest touched $92,232, a decline of 10.3%. Although BTC recovered over the weekend and tried to regain $100,000, it still could not resist the downward pressure on the market and is now trading at $95,222. Bitwise: Further declines could be in the coming weeks Andre Dragosch, head of European research at asset manager Bitwise, said this risk aversion could continue for some time: Overall, the Fed is currently in a dilemma, with financial conditions continuing to tighten despite three consecutive rate cuts since September. Meanwhile, according to Truflation's US inflation indicators, real-time inflation measurements have accelerated again to new highs over the past few months. Dragosch added that BTC could fall further in the coming weeks, though it could also be a good opportunity to catch the bottom: So it's likely that we'll see more painful declines in the coming weeks, but given the continued Favourable Information provided by the lack of BTC supply, This can be an interesting buying opportunity. In addition, according to Cointelegraph, Matt Hougan, chief investment officer at Bitwise, said that the reason for the recent pullback in the encryption market may be "the natural clearance of leverage", and stressed that the long-term regional dynamics are still good, and the encryption market is still in a strong Bull Market. Is the inflation pattern of the 1970s about to play out? On the other hand, you may have heard that the current price pressures in the U.S. economy are similar to the inflation patterns of the 1970s, when the second wave of inflation was more intense than the first. Dragosch pointed out that the high inflation rate in previous months has made the Fed worry about a possible second wave of inflation, which has also led the Fed to be more cautious about the decision to cut interest rates: they may be afraid of the Twin Peak scenario and the recovery of Twin Peak inflation in the 70s, which is why they are less willing to actively cut interest rates. If they cut interest rates sharply, they risk a sharp acceleration in inflation, and if they don't do anything, the economy could suffer. The Fed is scared of this scenario which is why Powell will probably do too little/too late… Expect more pain over the coming weeks. pic.twitter.com/pi9dsMIUMU — André Dragosch, PhD | Bitcoin & Macro (@Andre_Dragosch) December 20, 2024 Related Reports El Salvador rarely increased the position this morning 11 BTC, BTC purchase plan will accelerate? Japan's Central Bank does not raise interest rates to maintain 0.25% Intrerest Rate, BTC stands back $100,000 U.S. debt ten-year Intrerest Rate rises above 4.5%! New debt king: Trump will not buy BTC before taking office "Bitwise warns: BTC may face a "painful decline" in the coming weeks, but it is also a good opportunity to catch the bottom" This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Block Chain News Media".