US Treasury Move Triggers Cryptocurrency Rally
Caitlin Long, Founder and CEO of Custodia Bank, recently weighed in on the sudden rise in cryptocurrency markets. She attributed the sharp increase in prices to macroeconomic factors, specifically the actions of the US Treasury Department. The department announced plans to more than double its long-term bond repurchases, which triggered a shift in interest rates and put downward pressure on the US dollar.
According to Long, a weaker US dollar generally supports risk assets, such as Bitcoin and Ethereum. This led to a sharp upward movement in these leading crypto assets.
When asked if the 4-year cycle for Bitcoin had ended, Long pointed out that the charts and fundamental data suggest otherwise. He noted that the basic dynamics of the mining economy have not changed, with miners still facing high electricity and computing costs, which can lead to profitability issues and withdrawals from the market.
Long cautioned against making price predictions but stated that based on past experience, Bitcoin appears cheap at current levels.