BasEx | Experts Discuss U.S. Treasury Impact on Bitcoin Dynamics
Experts Highlight the Impact of US Treasury Plans on Bitcoin Dynamics
29.01.2023
Experts Highlight the Impact of US Treasury Plans on Bitcoin Dynamics

Analysts at QCP Capital have noted that the upcoming Federal Reserve meeting on January 31 and the US Treasury's borrowing plans could affect liquidity levels, impacting the dynamics of Bitcoin.

Experts anticipate information about the pace of the central bank's balance sheet reduction. A slowdown in this pace may support liquidity in the system.

Additionally, analysts believe that the US Treasury will maintain its focus on short-term securities.

Two main factors might influence this choice: the upcoming US presidential elections in November and expectations of a Federal Reserve key rate cut, leading to postponing borrowings in long-term securities until a time when interest payments will be lower.

Specialists indicate that such a scenario would be positive for risk assets, including cryptocurrencies. Conversely, rising bond yields could lead to sell-offs in the stock market.

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