Is Bitcoin unable to rise? Nansen: The market has priced in two Fed rate cuts in 2024

This site (120btC.coM): Last night (31st) the inflation indicator that the US Federal Reserve (Fed) paid attention to - the personal consumption expenditures price index (PCE) was released, the data shows : In April, the overall PCE increased by 0.3% month-on-month and 2.7% year-on-year, both unchanged from the previous month. In addition, core PCE increased by 0.2% monthly in April, which was lower than the 0.3% monthly increase in March and was also in line with expectations.

Although the annual growth rate of 2.8% has remained unchanged for three consecutive months, slightly higher than the expected 2.7%, it shows that inflation has not continued to worsen. After the data came out, the four major U.S. stock indexes were mixed. The Dow Jones and S&P 500 indexes rose by 1.51% and 0.8% respectively, while the Nasdaq and Philadelphia Semiconductor Index fell by 0.01% and 0.96% respectively.

Nansen Analyst: The market has digested expectations of two interest rate cuts by the Federal Reserve in 2024

In this regard, Nansen's chief research analyst Aurelie Barthere pointed out that inflation stickiness remains strong, and The market has already reacted in advance to the fact that the Fed will cut interest rates twice this year, so it warns: The longer we stay in this high interest rate environment, the greater the downside risks.

She also pointed out that slowing economic growth is detrimental to cryptocurrency, warning investors that although they also remain strategically optimistic about the current cryptocurrency market, they also need to pay attention to signs of weakness in economic growth.

Bitcoin ETF failed to gain widespread support from financial advisors

On the other hand, although the Bitcoin spot ETF has attracted nearly $13.86 billion in inflows since its listing, CNBC reported that although Some advisors are considering recommending it in the future, but acceptance of cryptocurrency products remains low among financial advisors

Many advisors are taking a wait-and-see approach to Bitcoin spot ETFs, with the main factor influencing their adoption being "market time" and “regulatory compliance.” Ted Jenkin, founder and CEO of oXY Gen Financial in Atlanta, said: Once Bitcoin is more regulated, you will see its wider application. Even without regulation, though, as long as Bitcoin proves itself as an asset stable as a tech company over time - since I think it's more of an early stage technology than a currency - its adoption will increase.

In addition, some large financial institutions such as Vanguard (the world’s second largest asset management giant) have not expressed trust in Bitcoin ETFs, which has also affected the adoption rate among advisors. In the future, as time passes and regulations become clearer, it is worth our continued observation whether Bitcoin spot ETFs can enter the market of more traditional investors.

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