Post-FED Bitcoin Report from Research Firm 10x Research: Stick with Bitcoin, Avoid Ethereum
After the Federal Reserve announced only one interest rate cut for 2024, 10x Research advised investors to stick with Bitcoin and steer clear of Ethereum.
This recommendation comes amidst increased ETF inflows and lower-than-expected U.S. inflation rates.
While the Federal Reserve kept its 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 more aggressive approach, along with the lower CPI data, caused some market uncertainty and a drop in Bitcoin’s price.
Following the FED’s interest rate projection, Bitcoin, the top cryptocurrency by market value, fell to $66,050.
Despite this decline, 10x Research remains optimistic about Bitcoin’s future and anticipates a resurgence in its rally.
Markus Thielen, the founder of 10x Research, reiterated their advice to clients, saying, “Stick with the winners (Bitcoin) and avoid the others (like Ethereum).”
Thielen pointed out that historically, lower CPI figures have led to an increase in Bitcoin prices and expects this trend to continue.
With the U.S. consumer price inflation rate remaining flat in May, there has been a historical trend of significant inflows into U.S.-listed spot Bitcoin ETFs during inflation slowdowns.
While provisional data from Farside Investors showed a $100 million raise in these ETFs on Wednesday, ending a two-day breakout streak, it is important to note that this information is not investment advice.
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