MADRID, 16 Oct. (EUROPA PRESS) –
The provider of funds and listed products WisdomTree believes that the crypto asset market will remain under pressure in the coming months if the US Federal Reserve (Fed) continues to raise rates to respond to inflation.
This is highlighted in its report on macroeconomic forecasts for 2023, which has been recently published.
The firm believes that inflation will go down, but not as much as expected, so central banks will continue to raise interest rates. In this scenario, the crypto asset market will remain under pressure for at least the next six months.
In addition, WisdomTree has emphasized that the value of bitcoin is highly correlated with the tightening or easing of financial conditions: when the Fed “flooded” the market with liquidity, bitcoin performed well, and when it tightened it, it did the opposite. .
Bitcoin is also closely related to the behavior of the US S index
However, WisdomTree expects the development of the crypto ecosystem to continue, as it expands beyond the most well-known cryptocurrency, bitcoin.
This industry is experiencing what is known as a “crypto winter,” with prices down as much as 70% from highs for many tokens. The provider of funds and listed products believes that despite this situation, it is “a good time” to focus on building and developing the “winning” products of the next increases.
On the other hand, WisdomTree sees a “significant” expansion opportunity for non-fungible tokens (NFTs), although the intellectual property issue needs to be clarified for this industry to expand.
Although bitcoin remains the dominant cryptocurrency in the ecosystem, WisdomTree highlights in its report that ethereum is gaining ground and already has 20% of the industry’s market value.
The success of its merger, which took place in September and will allow the network’s energy consumption to be substantially reduced, will continue to place ethereum at the center of all conversations, the firm has pointed out.
