However, the retreat likely stemmed from macro factors, specifically hawkish comments by the Federal Reserve. These ignited a “risk-off” mentality as an interest rate cut became more unlikely in 2024, with a hike becoming possible. Since then, economic data has been weaker than expected, making a hike very unlikely for now. This shift has put the risk trade back on, setting an immediate floor in BTC prices, which have since recovered above $60,000. It also suggests a shift back to supply and demand factors for bitcoin, which appear favorable for higher prices.
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