- It said that due to the U.S. Federal Reserve's monetary policy easing, Bitcoin is expected to benefit from liquidity supply this year.
- CEO Barhydt said that low interest rates and clarified regulations will draw institutional investors' participation and lead to sustained growth in the digital asset market.
- However, the market views it as premature to expect a sharp interest rate cut, and a cautious view was raised that Bitcoin will show a steady upward trend rather than an explosive surge.
- The article was summarized using an artificial intelligence-based language model.
- Due to the nature of the technology, key content in the text may be excluded or different from the facts.
With the U.S. Federal Reserve (Fed)'s monetary easing supplying liquidity to global markets, there are forecasts that Bitcoin will benefit this year. The analysis suggests that risk-asset investor sentiment, which had been dampened by tightening, will be revived.
On the 1st (local time), Bill Barhydt, CEO of Abra, said in an interview with Schwab Network, "The Fed is already laying the groundwork for accommodative policy."
Barhydt described the Fed's recent moves as a 'QE (quantitative easing) light version.' He said, "The Fed has begun buying bonds on its own to support demand for Treasuries," and explained, "Next year, with interest rates likely to fall and demand for Treasuries likely to decrease, this combination is a positive signal for all assets, including Bitcoin."
Besides liquidity supply, he cited U.S. regulatory clarity and increased participation by institutional investors as upward drivers. Barhydt said, "With low interest rates and clearer regulations coming together, the digital asset market will show strong growth for years," predicting that this rise will not be a one-off cycle.
However, some note that it is too early to expect a sharp rate cut immediately. According to CME FedWatch, traders see a 14.9% chance of a rate cut at the January Federal Open Market Committee (FOMC) meeting. This is a sharp drop from 23% in November, suggesting that a policy pivot could be delayed compared to market expectations.
A cautious view also holds that Bitcoin will show a steady upward trend rather than an explosive surge. Matt Hogan, Bitwise's Chief Investment Officer (CIO), said in an interview last week, "Bitcoin will show strong but gradual gains over the next 10 years." He added, "Expect lower volatility and steady performance rather than the explosive returns seen in past cycles."
