Analysts predicted the growth of Bitcoin to $36 thousand.
Matrixport analysts predicted a new bitcoin rally to $36,000 amid Fed policy
Matrixport experts named U.S. Federal Reserve policy, stock buybacks, and rising miner income as catalysts for a new Bitcoin rally
The end of the Fed's interest rate hike cycle could become one of the drivers of a new rally in the crypto market, according to analysts at Matrixport. According to their forecasts, the Bitcoin rate could grow by 20%, reaching $36,000.
The U.S. Federal Reserve raised interest rates another 25 bps on May 3, but there is a high probability that this is the last increase in this cycle. That could potentially set the crypto market up for another strong rally, analysts wrote.
Matrixport is a digital-asset financial services platform. It offers cryptocurrency loans, trading, and DeFi products with returns of up to 10 percent per annum. According to the project's website, the company has $10 billion in funds under management and $5 billion in monthly transactions.
The authors of the report refer to the U.S. banking crisis. They predict that troubled financial institutions will require an infusion of liquidity and government guarantees for those institutions that are being helped.
Analysts also cited the resumption of repurchasing of own shares by corporations after the end of the reporting season as an argument in favor of market growth. About $1 trillion is expected to be allocated for this purpose. This trend will continue to have a favorable impact on stocks and risky assets, the report says.
Analyzing the technical picture of Bitcoin's price movement, Matrixport notes that BTC is trading within a tapering triangle that is "about to break up." From a technical point of view, this could lead to an increase by an amount equal to the range where the triangle began to form, which is about 6,100 points, to the level of $35-36 thousand.
Triangle breakout on the Bitcoin chart. Source: Matrixport Technologies
Despite the recent drop in cryptocurrency trading volumes, the number of transactions on the Bitcoin network has reached new all-time highs, with more than 1 million addresses showing activity. Forecasts for May network activity and the corresponding amount of commissions as a percentage of total miners' income could rise to levels last seen in May 2021, analysts wrote.
According to Glassnode's calculations, bitcoin miners' income is already showing year-end highs.
Analysts at Matrixport also call the growth of "meme" cryptocurrencies a sign of improving the sentiment ("mood") of the market. They note that such coins as Pepe (PEPE), Wojak (WOJAK), Chad Coin (CHAD), and Ignore Fud (4TOKEN) showed growth in price from 250% to 600% in one week, and the market capitalization of PEPE exceeded $480 million.
Taking into consideration the factors listed above, "it is difficult to maintain a bearish mood on the market," the authors of the report write.
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