Crypto’s Bullish Surge — Would There be a ‘Soft Landing’ to Expect?

  • Grayscale report highlights improved digital asset markets since 2022.
  • Risk to crypto valuations lies in US economic “soft landing.”
  • “If the economy stumbles or the Federal Reserve raises real rates further, the crypto recovery may pause over the near-term,” the report said.

The crypto industry is currently experiencing a boost from technological advancements and increasingly favorable legal and legislative factors. However, the biggest risk to crypto valuations lies in the macroeconomic outlook, particularly the possibility of a “soft landing” for the US economy.

In the latest report of Grayscale Investments, Zach Pandl, Managing Director of Research, emphasized the significant improvement in digital asset markets since late 2022. He pointed out that the recovery has been driven by favorable economic data of a mix of low inflation and steady growth, decreasing the perceived likelihood of a recession.

This positive sentiment in the market has led to an upswing in risk assets’ prices, including prominent cryptocurrencies like Bitcoin.

“If the US economy can achieve a soft landing, the rebound in crypto market capitalization can continue.”

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Hello, my name is Vincent Parks. I help novice traders and private investors. I write articles on trading / TA / trading psychology etc. For the past 3 years, I have been an account manager in a company that specializes in binary options. I have more than 5 years of professional experience in FX/crypto trading. My goal in life is to share my knowledge and experience with more people.