Coinbase Institutional Research Director: Bitcoin price may bottom out in a few weeks and rebound to new highs later this year

ChainCatcher news, according to CoinDesk, Coinbase Institutional's research director David Duong stated that the market almost universally expects the Federal Reserve to maintain interest rates at its Federal Open Market Committee meeting this week, but investors should pay attention to any potential changes in the Fed's balance sheet reduction (i.e., quantitative tightening, QT) plan. He wrote in a report on Monday: "We believe the Fed may pause or end its quantitative tightening plan as bank reserve levels are nearing 10-11% of U.S. GDP, a level that is generally considered sufficient to maintain financial stability."

He noted that the recent cryptocurrency sell-off was primarily due to macroeconomic concerns and deteriorating liquidity conditions, but these factors may improve in the next quarter, providing support for asset prices. "Cryptocurrency prices may bottom out in the coming weeks and then rebound to new highs later this year."