Following the sudden and sharp rise in cryptocurrency markets, Caitlin Long, founder and CEO of Custodia Bank and a prominent figure in the market, evaluated the recent activity in the Bitcoin market and financial markets as a whole. Long stated that the sharp market rally is driven by macroeconomic reasons and actions from the U.S. Department of the Treasury.
Caitlin Long, commenting on the U.S. Department of the Treasury's announcement that it would more than double the volume of long-term bond buybacks (30-year Treasury bonds), referred to this as a form of 'yield curve control.'
Long stated that this move directly triggered a sharp change in interest rates and put pressure on the U.S. dollar, weakening it. She added that a weakening dollar typically supports risk assets. This situation led to a sharp rise in leading cryptocurrencies such as Bitcoin and Ethereum.
Addressing the frequently discussed market question lately, 'Has the 4-year cycle ended?', Long stated that charts and fundamental data indicate the cycle is still ongoing. She noted that the core dynamic processes in the mining economy have not changed; decreasing profitability and market exit due to high electricity and computational costs are a natural part of the cycle.
Long, refraining from making price predictions, stated that, based on past experience, Bitcoin looks cheap at current levels.
*This is not investment advice.
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