Morgan Creek CEO Mark Yusko in an interview Cointelegraph said that the next bull market could begin as early as the second quarter of 2023 amid favorable macroeconomic conditions and the expectation of a Bitcoin halving.
According to him, the US Federal Reserve System (FRS) is unlikely to cut the key rate in the near future. However, even a slowdown or pause in this process will be taken as a positive signal for the cryptocurrency market.
On February 1, the Fed raised the key rate range by 25 basis points, to 4.5-4.75% per annum. Such a “soft” increase in the indicator was the first since March 2022, when the agency began to tighten monetary policy.
In response to the Fed’s decision, Bitcoin reacted by rising to $24,000 for the first time since August 2022, according to CoinGecko. The capitalization of the cryptocurrency market has exceeded $1.1 trillion.
According to Yusko, the Fed is signaling a stabilization of the situation in the economy, which is perceived by the market as an intention to reduce the range of the key rate. Such an interpretation will lead to an increase in risky assets, which include cryptocurrencies.
As an additional reason for the bull market in 2023, the CEO of Morgan Creek cited Bitcoin halving expectations. He believes that the recovery of the digital asset market usually begins nine months before this event.
In December 2022, former BitMEX CEO Arthur Hayes stated that bitcoin had reached its current cycle low as nearly all “irresponsible entities” ran out of BTC to sell.
In the same month, co-founder and former head of the BTCC exchange, Bobby Lee, did not allow the cryptocurrency bull market to return until early 2025.
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