The BitMEX cryptocurrency exchange team presented several possible scenarios for the development of the cryptocurrency industry in the coming months.
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Experts proceed from the fact that the Federalthe US Reserve System (Fed) is likely to stop raising interest rates by the end of the year, which will lead to an inflow of funds into global capital markets and risk-free assets. Cryptocurrencies, especially bitcoin and ether, will also benefit in this situation.
According to BitMEX experts, the Fed is likely toslow down interest rate hikes or stop them completely by the second half of 2023, and begin to reduce them towards the end of the year. The percentage is currently 4.75%, which was last seen during the financial crash of 2008.
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This policy change could helpmarket recovery and increased interest in the cryptocurrency sector, as investors turn their attention to riskier assets that provide more profit.
CEO Stefan Lutz believes thatcentral banks will have no choice but to abandon their aggressive rate hike strategy, because otherwise there will be a further decline in real economic activity.
Although the odds are slim, BitMEX analysts do not rule out the risk that the Fed will continue to raise interest rates due to fears of stagflation, including after 2023.
Such a decision will blunt investor appetite for various asset classes, including cryptocurrencies, which will cause a downturn in the industry.
Such an unlikely scenario could lead to a sharp drop in the price of bitcoin to $5,000, causing most investors to focus on safe-haven assets like gold.
Several events may occur in 2023 that could change the perception of cryptocurrency and turn it into a less risky asset class.
Thanks to the efforts of market and industry participants, legal use cases in the industry are multiplying.
In addition, it is stated that interest in the worlddecentralized finance will only grow as the industry emerges from the crisis with a set of strong players with legitimate business models. This will allow investing with a relatively low level of risk than in previous years.
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