- Analysts expect that the measures of the Federal Reserve and the US Treasury will affect the market slowly but positively.
- Hayes eyes Solana, “dog coins” for momentum trading as liquidity improves
Market analysts expect a slight bullish impact on bitcoin [BTC] and markets in general due to the recent “dovish” rate decision by the Fed and the US Treasury. QRA (Quarterly Refund Announcement).
According to QCP, the Singapore-based institutional cryptocurrency trading firm, the US Federal Reserve and QRA were “more cautious than expected.” He
noted that,
‘At the FOMC, Powell said that the Federal Reserve does not intend to raise rates and announced the slowdown of quantitative tightening (QT) from $60 billion per month to $25 billion. For QRA, the Treasury will leave issues with longer maturities unchanged, reducing fears of a rise in longer-term yields. This should help curb the USD rally, which is positive for risk assets.”
Arthur Hayes, co-founder of BitMEX echoed similar sentiments, but stressed that the impact on liquidity will be slight on the charts.
“The impact of this QRA is slightly positive for dollar liquidity… but it will help fill our exchanges slowly over time.”
Hayes eyes Solana, “dog coins” for momentum trading
Hayes added that the current negative price movement will ease as liquidity slowly improves each month. In fact, the expect BTC to regain $60,000 and stay within the $60,000-70,000 range until August.
However, that’s not all, as the executive expects other altcoins to perform better. For his part, Hayes is looking solarium [SOL], dog hat [WIF], Dogecoin [DOGE] for impulse trading. Part of his statement read:
“I am buying Solana and Doggie coins for momentum trading positions.”
Momentum trading is a technique that involves buying or selling an asset that is moving extremely in one direction, followed by exits when the price shows signs of reversal. Asset manager Franklin Templeton also has a bullish stance. https://twitter.com/FTI_DA/status/1786049586152255659 towards Solana.
However, SOL’s Latest Price Action marked a bearish trend and revealed that short traders have benefited from the market decline. It was trading at $136 at press time, down 35% from its all-time high of $210 in mid-March.
However, the bulls have defended the short-term support at $126 twice, in mid-April and early May. Even so, A decisive trend change could materialize only if the price moves above the previous high of $160.
Furthermore, Santiment data showed that the overall market sentiment around SOL remained negative, as indicated by the negative weighted sentiment reading.
Therefore, a strong bullish reversal is unlikely in the near term.
Next: Bitcoin price prediction: Should you buy and is there still $100,000 at stake?
This is an automatic translation of our English version.
