The Bitcoin and altcoin market has been experiencing fluctuations in recent weeks. The course of the US economy and the US midterm elections to be held in November are among the most important factors affecting the market. Coinbase’s latest weekly report provides important information on these two important issues. The report highlights macroeconomic indicators that show the US economy has peaked in the second quarter of 2024 and is likely to move towards recession. This situation may also have important consequences for the cryptocurrency market.
Pay attention to these for Bitcoin and the leading altcoin
Coinbase’s latest weekly report highlights macroeconomic indicators that suggest the US economy is peaking in the second quarter of 2024 and perhaps heading towards recession. This situation may also have important consequences for the cryptocurrency market. Authors of the report, David Duong and David Han, state that the increase in the unemployment rate in the United States in June and the inversion of the Treasury bond yield curve were developments that were frequently observed before a recession in the past. In light of these findings, it is predicted that the US economy may enter a slowdown or even contraction for the remainder of 2024.
An economic recession may reduce individual investors’ interest in risky assets. This could lead to a decline in new stock or cryptocurrency purchases. Investors may prefer to transfer their money to safer havens until the uncertainties disappear. Coinbase analysts think that the US Federal Reserve (FED) may start interest rate cuts in late 2024. This could revitalize the markets and push cryptocurrency prices up. However, it should also be taken into account that if investors are worried about a recession, interest rate cuts may not have the expected effect.
US elections in November are important
Analysts are also talking about the US midterm elections in November. They argue that the elections could be a positive catalyst for the cryptocurrency market, encouraging investors to turn to Bitcoin as an alternative to the traditional system, regardless of which candidate wins. The report also predicts a surprise rise in Ethereum price with the approval of Spot Ethereum ETFs.
In general evaluation, analysts expect a significant rise in the BTC and altcoin market in late September. However, high volatility will prevail in the market in July and August. Investors are advised to be careful and pay attention to risk management during this period. As a result, it is thought that the US economy will reach its peak in the second quarter of 2024 and there is a possibility of heading towards recession. Fear of recession may negatively affect cryptocurrency investments. The FED is expected to start reducing interest rates in late 2024.
To stay up-to-date with the breaking news, follow us on Twitter, Facebook, and Instagram. Join our Telegram and YouTube channel
