As a seasoned financial analyst with over two decades of experience in global markets, I find myself increasingly optimistic about the prospects for cryptocurrencies in the coming months. My bullish stance is primarily driven by the macroeconomic conditions that appear to be shaping up favorably for digital assets. The U.S. and China, the world’s two largest economies, are both on the verge of easing cycles, which could potentially set the stage for a cryptocurrency rally.
According to analyst Qiao Wang of Alliance, it seems that the economic situations of the two biggest global powers, the U.S. and China, are approaching periods of monetary policy easing. This could create favorable macroeconomic conditions that might stimulate a surge in cryptocurrency markets.
“We’ll be way up in few months”: Analyst Qiao Wang is bullish on crypto
Currently, well-known cryptocurrency analyst and pundit Qiao Wang is more optimistic about crypto than he’s been in recent months. He expressed this viewpoint yesterday, September 27th, citing a mix of broader economic factors as the reason for his bullish stance.
I’ve felt incredibly optimistic lately, and here’s why: The two largest economies have initiated an easing cycle. Moreover, the chart is showing signs of improvement, although there’s still a bit of skepticism in the air. However, applying Occam’s Razor, it seems likely that we’ll see significant growth several months down the line.
— qw (@QwQiao) September 27, 2024
He signaled that the United States and China, the world’s two biggest economic powers, have initiated a phase known as “easing cycles.” This essentially means they are resuming a monetary policy called “quantitative easing” (QE). In simpler terms, QE is when these countries buy large quantities of securities on the open market. This practice helps reduce interest rates and increases the money supply in their economies.
During the financial crises in 2008 and 2020, the U.S. government implemented actions aimed at mitigating the market downturn and lessening its impact on citizens.
Moreover, Wang acknowledged that the chart appears promising now. Over the past month, Bitcoin (BTC) has increased nearly 10%, contradicting the well-established notion that Bitcoin tends to perform poorly in September.
Simultaneously, he mentioned that the current mood among investors is skeptical, or what’s often referred to as the “doubt stage.” Therefore, according to this analyst, there’s still time before we see a significant rise in the market, which could occur several months down the line.
Big recession around corner?
Discussions among experts and the public suggest that quantitative easing measures proposed by both the U.S. and China could serve as potent triggers, helping navigate through challenging economic periods.
As a researcher, I find it intriguing to note that for the first time in 19 years, I’ve observed an action taken by the People’s Bank of China that seems somewhat unprecedented. They have initiated a treasury bond trade worth approximately 100 billion yuan, which is equivalent to around $14.1 billion. This move, for me, adds another layer to understanding their monetary policies and strategies.
For the first time since July 2023, the Federal Reserve in the United States lowered its interest rate. Previously holding steady at 5.25% for more than a year, the rate has now been adjusted downward to 5%.
Previously reported by U.Today, experienced trader Henrik Zeberg has consistently predicted a severe economic downturn, reminiscent of the 1920s, in the upcoming months.
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2024-09-28 16:08