Cryptocurrency analytics firm Alphractal has released its latest report shedding light on the impact of macroeconomic changes on Bitcoin and altcoins. The report focuses on the ongoing decline in the Effective Federal Funds Rate (EFFR) and its potential impact on traditional markets and digital assets. Alphractal points out the ongoing decline of EFFR by noting its historical correlation with major economic events. Declining EFFR levels, especially when paired with other macroeconomic metrics, often signal financial crises or shifts in monetary policy. The report includes a chart that marks periods when the EFFR fell with grey areas and significant rate changes with red areas. These significant transitions have historically influenced market behavior. While Bitcoin is a relatively new asset, the report points to a notable trend: significant fluctuations in Bitcoin’s price coincided with the decline of the EFFR after August 2019. Alphractal suggests that changes in U.S. monetary policy could affect Bitcoin’s price dynamics, albeit with potential delays. The analysis highlights that it is important to monitor both macroeconomic metrics and crypto-specific indicators to predict market movements. “Market reactions, including those in Bitcoin, may take months to adjust to changes in the EFFR, which may only then lead to significant volatility,” the report says. Related News: Patient Cryptocurrency Whale Waited 9 Months for This Altcoin: Made 529x Profit Data from Alphractal points to a bullish sentiment across the market, with the overall Long/Short ratio at 3. Bitcoin has a more conservative Long/Short ratio of 1.75. The company also touched on altcoins, with more longs and more shorts on the altcoin side. Altcoins with Higher Long Participation: ONDO, ETH, SOL, DOT, DOGS Altcoins with Higher Short Participation: AGLD, SXP, SUI The report also examines whale interest, providing insights into assets that attract large-scale investments: Whales Prefer Long Positions: ARKM, ALICE Whales Prefer Short Positions: BNB, PEPE, TRX, ENA *This is not investment advice. Continue Reading: Data Revealed: Whales Are More Bullish on These 7 Altcoins, Bearish on 6 Others – Here’s the List
