Analyst: Bitcoin Price Likely to Bottom Out in a Few Weeks, Rebound to New High Later This Year

On March 18th, David Duong, the Director of Institutional Research at Coinbase, stated that the market generally anticipates that the Federal Reserve will maintain the interest rate unchanged at this week's Federal Open Market Committee meeting. However, investors should pay attention to any potential changes to the Fed's balance sheet reduction (that is, quantitative tightening, QT) plan. In his report on Monday, he wrote, "We think that the Fed may pause or end its quantitative tightening plan because the reserve levels at banks have reached nearly 10-11% of the US GDP, a level generally regarded as sufficient to maintain financial stability." He pointed out that the recent selloff of cryptocurrencies was mainly due to macroeconomic concerns and the deterioration of liquidity conditions. But these factors may improve in the next quarter, providing support for asset prices. "Cryptocurrency prices may reach a bottom in the coming weeks and then rebound to new highs later this year," he concluded. (CoinDesk)