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World Top Exchange Huobi Predict Bitcoin Will Enter Bear Market This Year

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The world top exchange Huobi believes that Bitcoin will suffer a Bear market this year due to the U.S. Fed’s tapering in November.



The world’s top exchange Huobi is listed in Hong Kong and processes more than $1 billion of trading volume daily, according to Coinmarketcap. It is one of the biggest crypto trading platforms in the world.

In collaboration with the Blockchain Association Singapore, Huobi released a report on Friday titled “Global Blockchain Industry Overview and Trends 2020-2021 Annual Report”

In the report, Huobi experts believe that Bitcoin is like to suffer a bear market, and the price of bitcoin will fall this year as global markets will react to the U.S. Federal Reserve dialing back on asset purchases.

As we know, in general, when bitcoin falls, the entire digital assets market suffers, as the crypto market is still not mature. The fall of the king crypto negatively influences the price of all other altcoins, including Ethereum.

Tapering is the process in which the Fed slows down its purchases of new assets, including securities and bonds. According to Huobi experts, Fed tapering and increasing interest rates could cause global liquidity to shrink and ultimately affect bitcoin’s price.

Huobi Research Institute, the research arm of Huobi, wrote:

“Fed tapering is likely to cause a reduction in global liquidity — or money pumped into the global economy — this year. Like many other high-risk assets, Bitcoin is often sensitive to changes in liquidity. Therefore, the cryptocurrency will face a ” bear market,” where the security faces a prolonged price decline.”

The report further clarifies that a rise in interest rates by Fed will put extra pressure on risky and nonregulated assets like Bitcoin, so “The possibility of bitcoin depreciation cannot be eliminated,”

Bitcoin touched $69,000 as an all-time high, but since then, the price of BTC has not been to hold its ground and kept on falling. And today, the BTC price broke the significant physiological level of $40K, currently trading at $38,800.

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Disclaimer

The content is for informational purposes only and may include the author’s personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

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