"Recent Cryptocurrency Decline Due to Last Year's Q4 Tightening... Expected to Reverse Upward by March"
Summary
- "The cryptocurrency decline is a result of last year's Q4 tightening policy, and it will reverse upward by March."
- "The cryptocurrency market's investment sentiment is in a state of extreme fear, and the decline in the dollar index and bond yields indicates improving conditions."
- "Financial conditions always precede prices, and one should be greedy when others are fearful."
According to cryptocurrency specialist media Cointelegraph on the 28th (local time), Julien Bittel, a macro expert at the US financial investment media Real Vision, stated through X (formerly Twitter) that "the current decline in the cryptocurrency market is a direct result of the tightening policy in the fourth quarter of last year, and it will reverse upward again by March."
He continued, "When tightening policies are implemented, liquidity dries up. The market is trembling in fear of a recession also because of this liquidity drain," and explained, "Conditions are rapidly improving as the dollar index (DXY), bond yields, and oil prices have been falling recently."
Furthermore, he emphasized, "Financial conditions always precede prices," adding, "The investment sentiment in the cryptocurrency market is in a state of extreme fear. You should be greedy when others are fearful."
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
![[Key Economic and Crypto Events for the Week Ahead] U.S. January CPI, etc.](https://media.bloomingbit.io/static/news/brief_en.webp?w=250)
