Ethereum
‘Still Early’: Sudden $6 Trillion Fed Inflation Reversal Expected to Trigger Bitcoin, Ethereum, XRP, Crypto Price Boom
Bitcoin
Bitcoin
suddenly soared, climbing after the latest US inflation data showed that price pressure had resumed its downward trend (Some are speculating that a “huge” earthquake in China could be imminent.).
The price of bitcoin rose above $65,000 per bitcoin for the first time since early May, as traders step up their bets that the Federal Reserve will soon declare victory in its war against inflation and cut interest rates.although Elon Musk recently joined other high-profile investors in warning that “stealth money printing” could destroy the US dollar..
Ahead of Key Inflation Data That Sent Ethereum, XRP
XRP
and the broader crypto market is on the rise, a bullish Bitcoin investor predicted there is “$6 trillion in cash on the sidelines” that could propel Bitcoin’s price to $150,000 this year – calling Bitcoin’s latest bull run “still early.”
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Bitcoin, Ethereum, XRP and crypto traders are increasingly betting on Federal Reserve Chairman Jerome… [+] Powell will cut interest rates this year, which could drive up the price of Bitcoin.
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“Bitcoin is still at the beginning of an upcycle,” said Tom Lee, Fundstrat Global Advisors managing partner and head of research. said CNBC. “So the idea that it could reach $150,000 this year remains in our base case.”
The latest monthly U.S. Consumer Price Index data showed that the pace of U.S. inflation slowed slightly in April, rising 0.3% from 0.4% in March and against economists’ forecasts of 0.4%.
“I think it’s helpful that the Fed is reiterating its view on inflation and being relatively more dovish than the market,” Lee said. “So I think that’s why the markets are recovering.”
The price of bitcoin has soared about 75% since the start of the year, rising alongside expectations that the Federal Reserve would begin cutting interest rates this year.
“We know there’s a lot of pent-up demand,” Lee said. “Investment spending is picking up, ISM [international securities markets] are coming, there’s $6 trillion in cash waiting and people have been cautious for over two years now. »
However, some bitcoin and crypto market analysts have downplayed the Federal Reserve’s long-term impact on the price of bitcoin.
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The price of Bitcoin has surpassed its 2021 high, boosting the price of Ethereum, XRP and broader crypto… [+] walk.
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“While Federal Reserve policies may induce short-term volatility, they do not fundamentally change the long-term trajectory of bitcoin,” said Leena ElDeeb, a research associate at bitcoin and crypto investment firm 21Shares. cryptography, in comments sent by email. “Therefore, Bitcoin currently occupies a unique position as a risk-free and risk-free asset, navigating unique market dynamics.”
Bitcoin’s price rise this year has been driven by a fleet of new spot bitcoin exchange-traded funds (ETFs) from Wall Street, opening the bitcoin market to large swathes of investors who view crypto trading as risky.
Last month, a major leak from a Wall Street bank suggested that brokers could soon receive the green light to recommend spot bitcoin ETFs to their clients.