Macro Supports the Trend

The rise in the crypto ecosystem has positively affected both NASDAQ and S&P500 as Bitcoin is seen as an indicator of risk appetite from the global perspective. When it comes to crypto - specific trends, rather than Bitcoin, Ethereum is acknowledged as the parameter of altseason depending on the performance of the coin.

While both crypto and stocks are green, we need to understand the reason behind the trends in the markets. First of all, the trends in Bitcoin are obvious, post - ETF demand and halving, and Ethereum follows BTC with the expectation of spot ETFs.

As we tested around all - time - high levels of the leading cryptocurrencies, there might be a need to consider the state of the porfolio again. Initially, the eyes were on the FED because we received some data regarding the economy in the U.S.

PCE Index: Targets Achieved 🎯

The data from the economy made all investors pretty happy with the performance in the last year. Basically, the results met the forecast and there was no surprise, or a black swan, over the last month.

Econonic Calendar by Investing

The lower the Core PCE index, the higher the possibility of getting an interest rate cut by the FED. If we consider the trend in the Euro Zone, the U.S. and other global central banks, each data paving the interest rate cuts and the Quantitative Easing is valuable for all markets including the crypto ecosystem.

According to the table, the inflation has been losing its power while the narratives of the markets support the positive trends. With the green candles around, the market realized the necessity of taking some more profit before breaking another all time high level that may exceed $70K soon.

Soon, the dream may come true and the so called level of $100K might be tested if the hype on the spot Bitcoin ETFs is combined with even further scarcity of Bitcoin in the centralized exchanges.

• BlackRock: $1,881,560,590
• Grayscale: $1,360,694,512
• Fidelity: $1,006,042,968
• ARK Invest: $193,745,064
• Bitwise: $151,093,710

Watcher Guru on X

The current power of narratives is enough to make Bitcoin test its top level with around $5B volume. The pre - bull market showed us the teaser of what is coming for the long - term crypto investors. To be honest, I would not be surprised to see Bitcoin above $200K, either. The spot Bitcoin ETFs are nothing similar that happened to the crypto ecosystem before.

By the way, we need to consider the sell wall that GBTC by GrayScale had set against the price as GBTC liqudation has been non - stop happening as an outflow factor 🔥

What do you think about the PCE data and its positive / negative impacts on the market?

Share your thoughts below 👇

Hive On ✌️

Posted Using InLeo Alpha