According to the latest research from Matrixport Institute, the recent focus is on the following:
– The global interest rate cut cycle has begun, and this bull market will continue until the Federal Reserve cuts interest rates.
– There is a clear bullish sentiment in the BTC market, with BTC ETF seeing net inflows for 18 consecutive trading days.
– If the Nvidia stock price prediction is correct, BTC is expected to reach $100,000 this year.
The macroeconomy has always been the most important driver of BTC prices, and many market forecasts are based on changes in the macro environment. BTC trading is a complex field, and correctly analyzing the macro environment has played a crucial role in our ability to predict the bottom of the bear market in October 2022, correctly anticipate another bull market in January 2023, and make market trend judgments throughout the cycle.
With aggressive long positions in contracts, investors need to avoid the risk of liquidation. With expectations of rising Bitcoin prices, futures traders are increasing their long positions, with open contracts climbing to $20.5 billion, higher than the peaks in March and April 2024. In fact, the buying pressure is quite aggressive, with limited impact on funding rates.
The bull market may continue until the Federal Reserve cuts interest rates, not only because of decreasing inflation, but also because economic growth will slow significantly by then. Although this situation may take several months or even quarters to fully materialize, we expect BTC to hit a new all-time high in the coming days. Historical data shows that Bitcoin’s returns have been most significant when the Federal Reserve ends aggressive rate hikes and pauses rate hikes. It is worth noting that since July 2023, the Federal Reserve has maintained a pause in rate hikes, during which we have also witnessed a significant increase in Bitcoin.
From a strategic perspective, some central banks have already started cutting interest rates. The European Central Bank cut interest rates by 25 basis points, bringing the three main rates to 4.25%, 3.75%, and 4.50%, marking the first rate cut since 2019 and making it the second central bank among G7 countries to cut rates. Data shows that the global interest rate cut cycle may have already begun, and it is only a matter of time before the Federal Reserve takes action to cut rates.
With inflation rates decreasing in May, funds are flowing into Bitcoin spot ETFs. This week, we observed the second largest single-day inflow of funds ever. As of June 7th, BTC spot ETFs have seen net inflows for 18 consecutive trading days, indicating strong investor confidence in the continuous bullish outlook for BTC.
BTC is on the verge of breaking new highs. Once it breaks $71,946, BTC could quickly surge to new highs. If Nvidia’s stock price prediction is correct, then Bitcoin will continue to rise, and we may see $100,000 BTC this year.
These insights are from Matrix on Target. Contact us to obtain the complete report.
Disclaimer: The market carries risks, and investments should be made cautiously. This article does not constitute investment advice. Digital asset trading may involve high risks and volatility. Investment decisions should be made after careful consideration of individual circumstances and consultation with financial professionals. Matrixport is not responsible for any investment decisions based on the information provided in this content.
