Crypto News: 10x Research Urges Investors to Stick with Bitcoin and Avoid Ethereum Post-FED Announcement
Following the Federal Reserve’s prediction of only one interest rate cut for 2024, research company 10x Research has advised investors to stick with Bitcoin and steer clear of Ethereum.
The decision comes amidst renewed ETF inflows and lower-than-expected U.S. inflation rates. Despite the Federal Reserve’s decision to keep the benchmark borrowing cost steady at 5.25%-5.5%, they revised their forecast from three interest rate cuts to just one for the year.
This unexpected shift in policy, along with lower-than-expected CPI data, caused a dip in Bitcoin’s price, which fell to $66,050 post-announcement. However, 10x Research remains optimistic about Bitcoin’s future, predicting a revival in its rally.
Founder of 10x Research, Markus Thielen, emphasized the importance of sticking with Bitcoin over other cryptocurrencies like Ethereum. He highlighted that historical trends show a correlation between lower CPI figures and higher Bitcoin prices, suggesting that this trend is likely to continue.
Thielen also noted that a slowdown in inflation typically leads to significant inflows into U.S.-listed spot Bitcoin ETFs. Data from Farside Investors showed a $100 million increase in these ETFs on the day of the Federal Reserve’s announcement, breaking a two-day streak of losses.
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