Crypto financial company BIT (formerly Matrixport) has assessed the potential weakening of the US dollar and expectations of interest rate cuts as a factor that could support bitcoin and gold prices.
The analysis published by the company states that macroeconomic conditions could simultaneously have a positive impact on both risky assets and gold, which is seen as a safe haven for capital.
According to BIT's assessment, technical indicators suggest that gold prices may have entered a process of forming a significant low. Analysts claim that after recent volatility, the precious metal could be preparing for a new upward trend. It is also forecast that bitcoin could receive support from similar macroeconomic factors during the same period.
The company emphasized that although market expectations suggest the US Federal Reserve (Fed) will raise interest rates about twice this year, this scenario is not certain. According to BIT, if economic data paints a different picture, it is also possible that the Fed will not raise interest rates at all this year. In that case, the US dollar could depreciate, and expectations for interest rate cuts in the markets could intensify.
The analysis notes that a weakening dollar is traditionally a key factor supporting gold prices, and points out that bitcoin has also shown sensitivity to similar macroeconomic events in recent years. In particular, it is noted that increasing global liquidity and expectations for lower interest rates could prompt investors to seek alternative assets.
Market experts believe that low interest rates could increase the attractiveness of both gold and bitcoin. Lower interest rates reduce the cost of holding non-yielding assets, encouraging investors to turn to such assets as a hedge against inflation.
However, analysts note that expectations regarding monetary policy can change quickly depending on economic data. In particular, inflation, employment, and economic growth indicators will continue to play a decisive role in determining the Fed's future actions.
*This is not investment advice.
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