Wall Street Bigwigs: "Bitcoin (BTC), the Worst is Over"

▲ Bitcoin (BTC), Dollar (USD)/AI Generated Image

Despite the dual headwinds of regulatory failure and renewed monetary tightening, Bitcoin is showing a sharp rebound, fueling speculation that the market has bottomed out.

According to cryptocurrency media BeInCrypto on September 23 (local time), Bitcoin (BTC) rebounded to $86,423 on Tuesday, overcoming the shock of falling below $76,000 a week earlier. Tom Lee, Chief Investment Officer of Fundstrat Capital, and Kevin Maloney, CEO of iTrustCapital, both stated that the worst phase is already over. Even though the U.S. crypto market structure bill was defeated in the Senate by a vote of 50 to 49, and the Federal Reserve (Fed) decided to raise the benchmark interest rate by 0.25 percentage points, the leading virtual asset did not break its upward trend.

CEO Maloney, who operates a virtual asset and stock investment platform based on retirement accounts, declared in an interview with Paul Barron that "crypto winter," which refers to the virtual asset downturn, is officially over. Maloney revealed that a significant portion of the $350 million in idle cash from customers waiting on the platform has begun to be reinvested into the market. He also emphasized, "Bitcoin does not need the U.S. crypto market structure bill," adding that if the weekly closing price forms above $85,000, it will establish a stable technical base for further gains.

CIO Lee also analyzed that the Federal Reserve's (Fed) monetary policy tightening level has virtually peaked. Lee referred to the revision of the government's inflation measurement method, which will be announced on September 30, noting that economists expect the rise in the Personal Consumption Expenditures (PCE) price index, preferred by the Fed, to decrease from 3.4% to around 3%. Lee asserted, "The Fed cannot become more hawkish than it is now," explaining that even if an additional interest rate hike of 0.25 percentage points is implemented in the future, it would not shake the economy and the stock market.

Bitcoin has maintained a 0.6% increase for the day, but downside factors also coexist in the market, such as 16 out of 18 Fed members forecasting additional interest rate hikes within the year and $450 million flowing out of Bitcoin spot ETFs. The major turning point for future direction is expected to be September 30, when the revised inflation statistics are officially announced.

[Article Key Summary]

-Bitcoin sharply rebounded from the $76,000 level to $86,423 despite the adverse factors of a benchmark interest rate hike and the defeat of the U.S. crypto market structure bill.

-CEO Kevin Maloney mentioned the inflow of $350 million in idle cash and presented a weekly closing price of $85,000 as a key support level.

-CIO Tom Lee analyzed that the worst phase of the market is over, anticipating a loosening of Fed tightening based on the forecast of slowing inflation indicators.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*