Bitwise CIO: The downgrade of the Federal Reserve's interest rate cut expectations will not change the bullish trend of cryptocurrencies
ChainCatcher news, Bitwise Chief Investment Officer Matt Hougan expressed his views on X, detailing why he believes the current bullish trend in the cryptocurrency market will continue.
Despite the Federal Reserve's latest policy statement causing a short-term shock to the market—reducing next year's rate cut expectations from 4 times to 2 times—Hougan believes this is merely a brief interlude in the bull market process. He pointed out that the cryptocurrency market has developed an endogenous momentum independent of Federal Reserve policy, with four core trends continuously driving industry development:
- Washington's regulatory attitude has clearly shifted to a more supportive stance.
- Institutional investors are entering the market at an accelerated pace, with ETF funds continuing to flow in.
- Government and corporate entities are strategically increasing their Bitcoin holdings.
- Breakthroughs in programmable blockchain technology.
From a technical perspective, Bitcoin's 10-day exponential moving average (approximately $102,000) continues to stay above the 20-day moving average (approximately $99,000). Hougan stated that this classic technical indicator has historically reflected market trends well.
Hougan emphasized that the cryptocurrency market is in a new multi-year bull market cycle, and he expects that a 50bps rate cut will not change this.
