Does it imply that Bitcoin is headed for another round of selling? On the contrary, I believe that the cryptocurrency is likely to remain in a broad range before a fresh breakout.
Recently, the Central African Republic became the second country after El Salvador to accept Bitcoin as a legal tender.
However, even if crypto holders double on a year-over-year basis, Bitcoin is likely to benefit considering the limited supply factor.
Besides creating a tight supply scenario, the long-term holders would wait for the next big rally.
Coming back to the rate hike and tightening of liquidity, I believe that money will still flow into risky asset classes.
Overall, phases of consolidation and sideways movement in any asset class tends to shake-out weak hands.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling.
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