Bitcoin

The strategy head at 21shares said the recent bitcoin selloff happened after the Federal Reserve kept interest rates unchanged. This was partly due to rising geopolitical tensions in the Middle East, causing a temporary shift to safer assets.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/5b415be71d264d2db2894369d4b49e8e.png" />He also mentioned that expected interest rate cuts later this year could increase global liquidity, benefiting risk assets like bitcoin.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/9ece887975e247f1ae849fcc3c23aecd.png" /><h3 id="impact-of-interest-rates-and-geopolitical-tensions-on-bitcoin">Impact of Interest Rates and Geopolitical Tensions on Bitcoin</h3><blockquote>Eliézer Ndinga, <a href="https://cryptosheadlines.com/us-vice-president-meets-top-tech-ceos-to-discuss-risks-of-ai/" rel="noopener noreferrer nofollow">Vice President</a> and Head of Strategy and Business Development at 21.co, the parent company of 21shares, shared his perspective on the impact of interest rates and market dynamics on bitcoin. 21shares is one of the world’s largest issuers of cryptocurrency exchange-traded products (ETPs). On Wednesday, the <a href="https://cryptosheadlines.com/first-time-in-years-federal-reserve-raises-fed-funds-rate-above-5/" rel="noopener noreferrer nofollow">Federal Reserve decided to maintain the benchmark interest rate</a> at 5.25% to 5.50%.</blockquote>“Bitcoin traded down around 3% a day after the Fed held interest rates steady. The selloff was broad-based, with the Nasdaq, S&amp;P 500, and gold also declining,” he said.Ndinga added that a potential contributing factor to the selloff is the increasing geopolitical tensions in the Middle East and fears that the conflict may escalate. This has led to a temporary flight to safety due to the geopolitical uncertainty.<h3 id="u-s-bitcoin-etf-resilience-and-future-interest-rate-outlook">U.S. Bitcoin ETF Resilience and Future Interest Rate Outlook</h3>Eliézer Ndinga, Vice President and Head of Strategy and Business Development at 21.co, highlighted the resilience of the U.S. bitcoin exchange-traded fund (ETF) market despite the broader selloff. “U.S. <a href="https://cryptosheadlines.com/blackrocks-ibit-bitcoin-etf-sees-major-inflows-amid-market-uncertainty/" rel="noopener noreferrer nofollow">bitcoin ETF inflows remain strong despite the market</a> selloff, with approximately $170 million net inflows in the past week and over $18 billion inflows since their launch in January,” he noted.<a href="https://cryptosheadlines.com/dogecoin-whale-transactions-up-49-78-amid-market-dip/" rel="noopener noreferrer nofollow">Also Read: Dogecoin Whale Transactions Up 49.78% Amid Market Dip</a>Addressing the outlook on interest rates, Ndinga pointed out market <a href="https://cryptosheadlines.com/bitcoin-price-rally-expected-with-march-fed-rate-cuts/" rel="noopener noreferrer nofollow">expectations for future rate cuts</a>. “Regarding interest rates, the market is fully pricing in a rate cut in September and a roughly 90% probability of further rate cuts in November and December, according to the CME Fedwatch Tool,” he said.Ndinga concluded that falling rates could lead to an expansion of global liquidity, which would be <a href="https://cryptosheadlines.com/bitcoins-position-among-the-worlds-biggest-companies/" rel="noopener noreferrer nofollow">positive for risk assets like bitcoin</a> and other cryptocurrencies.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/9ece887975e247f1ae849fcc3c23aecd.png" /><img src="https://academy-public.coinmarketcap.com/optimized-uploads/be235712562b447e8dd4691c4272134e.png" />Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.Join Cryptos Headlines <a href="https://linktr.ee/cryptosheadlines.com" rel="noopener noreferrer nofollow">Community</a>Follow Cryptos Headlines on <a href="https://news.google.com/publications/CAAqBwgKMLz3-wowvuzoAg" rel="noopener noreferrer nofollow">Google News</a>

Falling Rates to Boost Bitcoin and Crypto; Says 21shares VP

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