‘A New Market Regime’—The Fed May Have Just Triggered A $100 Billion Bitcoin Price Boom As Ethereum Surges Back
Bitcoin (BTC) has climbed following the Federal Reserve following through on its well-telegraphed 10th consecutive interest rate hike—with traders now turning to a looming $31.4 trillion problem.
The bitcoin price has come back to within touching distance of $30,000 per bitcoin despite sudden fears emerging that China, U.S. president Joe Biden and the Fed could be about to “destroy all value of bitcoin.” Ethereum (ETH), the second-largest cryptocurrency after bitcoin, has also soared, climbing back toward highs not seen since last summer (even after founder Vitalik Buterin issued a bull run warning).
Now, bullish bitcoin and crypto price analysts have predicted the Federal Reserve’s 10th hike could be its last of this cycle—potentially setting bitcoin up for a “strong rally.”
“While the Fed has raised interest rates by another 25 basis points, the probability that this was the last hike for this cycle is high, which could set up the market for another strong rally,” Markus Thielen, head of research at crypto-services provider Matrixport, wrote in an emailed note.
Thielen predicts the bitcoin price could now add 20% before mid-June, potentially making one bitcoin worth $35,000 and adding $100 billion to the bitcoin market capitalization. Furthermore, growing instability in the banking sector is influencing the appeal of bitcoin and other cryptocurrencies. Decentral Park Capital’s portfolio manager, Lewis Harland, believes that “You see outperformance of bitcoin within the crypto market when regional bank share prices collapse. This signals that bitcoin is the high-quality anti-dollar liquid play for investors as the crisis unfolds further.”
According to Forbes Digital Assets, the bitcoin price has climbed since the beginning of the U.S. bank crisis, pushed up by expectations that the Federal Reserve will pause its interest rate hikes.
More from Forbes
- ‘Worse Than 2008’—Bitcoin And Crypto Now Braced For $540 Billion Crisis, Ethereum Cofounder Warns After Price Boom
- Genesis ‘Has A Few Defenses’ Against $3.9 Billion Claim From FTX
- ‘Catastrophic Scenario’—JPMorgan Sees U.S. Banking Crisis As Boosting Bitcoin After $300 Billion Ethereum And Crypto Price Surge
- Coinbase Shares Up 9% As Crypto Exchange Beats Revenue Expectations
- 4 Progressives Working To Change The Narrative Around Bitcoin
- Jack Dorsey Donates $10 Million To Turn Bitcoin Into ‘The Native Currency Of The Internet’
- Coinbase Wins Court Round, But SEC Has Options To Delay Explaining Crypto Rules
- Congress Wants To Learn How Terrorists Use Crypto And How To Stop Them
According to https://www.forbes.com/sites/digital-assets/2023/05/04/a-new-market-regime-the-fed-may-have-just-triggered-a-100-billion-bitcoin-price-boom-as-ethereum-surges-back/
The material in this article is written on the basis of another article.