BlockBeats news, August 5, Coinbase's Bitcoin premium indicator has turned positive, indicating that domestic demand in the United States is recovering, further strengthening analysts' bullish sentiment on Bitcoin's long-term price outlook. An analyst from the Bitcoin yield protocol TeraHash stated in an interview: 'If the ETF continues to see inflows, and the macro environment remains stable, Bitcoin could trade between $130,000 and $150,000 by the end of the year, but it all depends on the Federal Reserve's next decisions, especially the highly anticipated rate cut in September.'
The market generally believes that a Federal Reserve rate cut will serve as a 'booster rocket' for Bitcoin, as a lower interest rate environment is more favorable for risk assets such as cryptocurrencies and stocks. James Butterfill, head of research at CoinShares, stated that he expects the Federal Reserve to 'rapidly shift to a dovish stance,' which means focusing more on economic growth rather than inflation control, usually achieved by lowering interest rates to enable cheaper borrowing costs.
Butterfill stated: 'The Federal Reserve is already in a passive state, too sensitive to short-term inflation, and is likely to make a reflexive interest rate cut; whether there will be a rate cut in September remains controversial, but it won't be too far off.'
