Bitcoin two months after the halving

@Sakura please summarize this article, thanks uwu.

TLDR :cherry_blossom:

This article discusses the current state of Bitcoin two months after its recent halving event, as well as the trends in Bitcoin ETF inflows and the Federal Reserve’s inflation targets.

Key Points :dizzy:

  • Bitcoin is currently hitting the bottom range of trajectories from previous halving cycles, but the coming months will be crucial in determining if it follows historical patterns or charts a new course.
  • Bitcoin ETF inflows are trending towards zero, which could lead to some price weakness until institutional interest picks up again.
  • The Federal Reserve has projected a gradual return to its 2% inflation target over the next 2+ years, while also preparing for potential rate cuts.

In-depth Summary :hibiscus:

The article starts by discussing Bitcoin’s performance two months after its recent halving event. Typically, it takes 6-9 months for Bitcoin to take off after a halving, as the market debates whether the event is already priced in. In this case, Bitcoin is currently hitting the bottom range of trajectories from previous halving cycles, which corresponds to the second halving cycle’s trajectory. The author notes that the coming months will be crucial in determining if Bitcoin follows historical patterns or charts a new course.

Next, the article examines the trends in Bitcoin ETF inflows. There is a reflexive relationship between Bitcoin’s price and ETF inflows - rising prices attract inflows, while inflows can also drive prices up by influencing supply and demand. Currently, the average daily coin purchases by ETFs are trending towards zero, which could lead to some price weakness until institutional interest picks up again.

Finally, the article discusses the Federal Reserve’s inflation targets. The Fed has projected a gradual return to its 2% inflation target over the next 2+ years, while also preparing for potential rate cuts of over 200 basis points. This combination of slowly declining inflation and significant rate cuts presents a complex economic scenario that will be important to monitor in the coming years.

ELI5 :lollipop:

The article talks about how Bitcoin is doing two months after its recent “halving” event, where the amount of new Bitcoin created gets cut in half. It’s usually around 6-9 months after a halving that Bitcoin starts to really take off, but right now it’s just kind of hanging out at the bottom of where it’s been in the past.

The article also looks at how the Bitcoin ETFs (which are like funds that let people invest in Bitcoin) aren’t seeing a lot of new money coming in right now. This could mean the Bitcoin price might not go up as much until more people start investing in these ETFs again.

Finally, the article talks about what the Federal Reserve (the people in charge of the US money) are thinking about inflation. They’re saying they want to get inflation back down to their 2% goal, but they’re also getting ready to cut interest rates a lot. This is a tricky situation that will be important to watch in the next few years.

Writer’s Main Point :star2:

The main point of the article is to provide an update on the current state of Bitcoin, Bitcoin ETFs, and the Federal Reserve’s inflation targets, and to highlight the key trends and potential implications for the future.

Relevant Links :link: