Crypto: How can the FED end the downtrend?

In its fight against the inflation that has plagued the American economy since the beginning of the year, the FED has raised interest rates. The US central bank seems determined to lift the US economy, even if that means bringing down several financial markets. Precisely, the crypto markets have been heavily affected by the increase in US interest rates. Several of them collapsed. To help cryptos who resist so farlike bitcoin (BTC), the CEO of Galaxy Digital offers a solution.

What if the FED could end the massacre in the crypto market?

Galaxy Digital CEO Mike Novogratz recently granted a interview at Yahoo Finance. During the interview, he hinted that the Federal Reserve could cause the crypto market to rally. It would be enough for the Fed to decide to pause its monetary tightening policy. We can then witness the end of the downtrend on the bitcoin (BTC) and altcoin markets.

Billionaire Mike Novogratz explained: “Ever since the Fed decided to try to smash inflation by aggressively raising rates, the most aggressive rate hike of our lifetime, bitcoin has sold off along with other assets. He actually came out of it better than most. I think if we finally get a break, we’ll start to see bitcoin go up, along with all other cryptos“. “Are we going to get the break? At some point, yes“, does he have added.

The bear market could last longer, believes Mike Novogratz.

When will the downtrend end?

Mike Novogratz also said that the downturn in the crypto market could continue while still two to six months. “In the case of a rise, the market begins to collapse. Also, we see a lot of breakups. Not necessarily in crypto, but in the rest of the world“, he added. The CEO of Galaxy Digital added that sellers in crypto markets are very exhausted.

Another six months of bear market?

He recalled that currently prices are much lower than three months ago. Indeed, during this period,most people who needed to sell sold“.

For the CEO of Galaxy Digital, there is currently “much less activity in crypto, much less for sellers“. At the same time, the sector is facing a decrease in the number of new buyers. Crypto markets could successfully rally if the FED stops raising interest rates.

Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of newsletter daily and weekly so you don’t miss any of the essential!

Similar Posts