Note that Bitcoin is becoming increasingly popular among investors. In particular, at the end of November, spot ETFs based on this cryptocurrency attracted a net capital inflow of $6.5 billion.

Performance of spot Bitcoin ETFs in the United States

This result is higher than the seven previous months, which also speaks volumes.

What will happen to the Bitcoin exchange rate

Thoughts on the situation in the coin market were shared by Andre Dragosz, head of Bitwise’s European research department. He noted several factors that are able to influence the situation with Bitcoin.

Here is the first rejoinder on the matter, which is cited by The Block.

A strengthening dollar has the potential to limit Bitcoin’s growth potential, as historically its performance has deteriorated during periods like this. In addition, a rising dollar often indicates tighter global liquidity, which could be an obstacle for BTC in the short term.


That is, the expert believes that the strengthening of the dollar's position can make it a more attractive asset for investors. This, in turn, is able to force market players to close some existing positions and thus affect the market.

However, such a prospect seems unlikely for Bitcoin. Firstly, cryptocurrencies are now clearly approaching another bullrun phase in the industry, making selling them today seem like a bad idea. Secondly, over the past month, BTC has risen in price by almost 34 per cent - and no strengthening of the dollar will cover this.


Bitcoin’s change in value over the past month

Dragosh continues.

Moreover, our quantitative models show that the US dollar exchange rate is currently the most significant macroeconomic factor affecting Bitcoin’s performance. At the same time, monetary policy and global growth expectations have become less important recently.

A key component of monetary policy is the benchmark interest rate, which determines the availability of financial borrowing. In September, the US Federal Reserve lowered the rate for the first time in four years – and at once by 50 basis points instead of the minimum 25. Thanks to this, it became obvious that bankers delayed keeping the rate at such a high level and now want to quickly correct the situation.

In November, the decline was 25 basis points. Thus the Fed continues to reduce pressure on the economy and make capital more available.

The next FOMC meeting will be held on 18 December. So far, market participants believe that we are in for another 25 basis point decline.

Now the probability of the US benchmark interest rate cut at the next FOMC meeting is 66 per cent

Another reason for Bitcoin’s decline in the future may be the policy of the Bank of Japan. It is assumed that during the next meeting its representatives will raise interest rates. Moreover, the calculation on such actions of bankers has already led to the strengthening of the yen against the dollar.

For example, in August, such a situation led to the closure of the so-called curry-trade on yen and large-scale liquidation of positions on risky assets.

We are talking about the activity of traders, who try to make money on the difference of interest rates. In this case, they borrowed yen with low interest rates and invested capital in higher yielding assets in other currencies.

Especially risky and sometimes very profitable assets today are meme tokens. The largest representatives of this sphere became the opening of the current bullrun and brought much more profit per cent than any other projects.

However, the situation with them can change very quickly, which was confirmed by Binance Marketing Director Rachel Conlan. She commented on the current topic of listing new meme tokens on the platform. Still, in this case, exchanges need to add HYIP assets to earn on commissions, but at the same time protect customers from fraud.

According to her, there is no specific factor that would guarantee the listing of a certain asset on Binance. However, the presence of a community of fans of a particular project definitely plays a role. Here’s a rejoinder on the matter, as quoted by Cointelegraph.

Our secret research team takes several different factors into account. Feedback and opinion from the community, as well as observing trends and ideas within it definitely play an important role.

😈 MORE INTERESTING STUFF CAN BE FOUND AT US AT YANDEX.ZEN!

Binance cryptocurrency exchange chief Richard Teng

As Conlan noted, meme tokens often face criticism due to their lack of obvious utility. However, this does not stop the trading platform, as some memes will sooner or later turn into projects on the scale of Dogecoin and Shiba Inu.

The expert continues.

However, we know that there are new hopeful memes with inbuilt utility. This is exactly what we need as the industry needs a user scenario.

According to the Binance spokeswoman, the cryptocurrency community will give out exponential growth over the next 18-24 months. And since this is a serious timeframe, it’s even more important for market participants to focus on projects with real use cases.

They don’t seem serious at first, but it’s critical to keep the community interested. We need to talk more about the innovations that have been brewing during this bear cycle and what people are creating.

Changpeng Zhao, former head of cryptocurrency exchange Binance

In general, the current market situation is similar to what happened during previous bullruns. However, in this case, investors are counting on the inauguration of Donald Trump. Still, the change of power in the US will definitely bring improvements to the coin industry.

Come to our crypto chat. There we will properly discuss what is happening in the digital asset industry and the course of the current bullrun.

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