Huobi Research Report 'Tafer Landed' draws a dark picture for cryptocurrency systems - markets and prices
Huobi Research Report 'Tafer Landed' draws a dark picture for cryptocurrency systems - markets and prices
A report by the Huobi Research Institute, the branch of the Asian stock exchange, examines the effects that impending changes in the US Federal Reserve policy on the price of cryptocurrencies. The report entitled "Tafer Landed: The Turning Point of the Cryptocurrency Market Is Coming" states that the continued growth of risky assets (including cryptocurrency) could be difficult to keep due to the upcoming reduction.
Huobi report examines Fed-Tafer effects
The latest by Huobi Research Test report , with the title "Tafer Landed: The Turning Point of the Cryptocurrency Market is coming", the possible path determines the cryptocurrency prices due to the measures of the Federal Reserve. The Tafer - d. h. The continuous reduction in dollar liquidity on the market due to the reduction in bond purchases - could have a negative impact on the growth of Bitcoin and other assets.
end of stock-to-flow
"TAPER LANDED" also takes a few stitches in the well-known Stock-to-Flow (S2F) model, which predicts Bitcoin's price increase based on its availability and production on the market. The report wrote on November 24th predicted that this model would fail due to its limited consideration of the economic elements around Bitcoin. William Lee von Huobi Research said:
Why does the "victorious" Bitcoin S2F model suddenly fail? Because Plan B took into account only the monthly SF ratio of Bitcoin and historical Bitcoin price data, but ignored the effects of external macro changes.
LEE further explains that Bitcoin's price growth has to do with the relaxation of the United States and other governments' economic policy, allegedly to save the market during the Coronavirus pandemic. But with the beginning of the so-called tapper and the upcoming interest rate, which normally takes place after taper periods, this bladder could burst in stock growth and cryptocurrency price increases next year.
accelerates the taper process, these effects could be felt even faster on the market, according to the study.
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