Executives at top US cryptocurrency exchange Coinbase have warned that macroeconomic factors are creating headwinds for the market in the short term.
In a new interview with Scott Melker, David Duong, head of institutional research at Coinbase, believes that a strong US dollar and a relatively hawkish stance from central banks around the world will have a negative impact on the crypto market in the near future. He said there is a possibility of giving.
“I might actually want to be very defensive in this very short term, especially [because] The dollar has now rebounded and is at about the same level as it was about a week and a half ago…
And while some of that is certainly seasonal, it's a big problem for cryptocurrencies. We're sitting in the numerator of the US dollar, so I think interest rate differentials on top of that are probably going to have a huge impact this week. Because there may or may not be a statement from the Federal Reserve (FED).It is the end [interest rate hike].
The European Central Bank (ECB) has said it wants to raise interest rates, but the recent Purchasing Managers' Index (PMI) numbers, weak economic indicators, [so] I don't know if they can do it…
Japan is very unwilling to take a hawkish position and move away from yield curve control, so if the interest rate differential we are working with is such, this trend will actually see the dollar last longer. Possibly, but I don't think I'm happy with cryptocurrencies at the moment. ”
However, according to Duong, as we move into the second half of 2023, the trading environment for digital assets will become more He says it should get better.
“I think we'll probably have a better environment going into the second half of this year. I think Mt.Gox distributions and payments will have been completed by that point. [and] People will start talking about half-life in earnest. ”
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