Only ‘A Matter Of Time’—Crypto ‘Wild Card’ Now Poised For A Huge Fed Bombshell After Bitcoin, Ethereum, BNB, XRP, Solana, Cardano And Dogecoin Price Rally
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Bitcoin, which is up nearly 10% this time last week and back above the closely watched $20,000 level, has rallied despite several warnings of a price crash. Price of other top ten cryptocurrencies including ethereum, BNB
Now, with the US Federal Reserve considering another interest rate hike in September, one analyst has predicted that it is “only a matter of time” before the Fed changes course – with bitcoin the “primary beneficiary”.
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“Bitcoin is a wild card that’s ripe for beating stocks as stocks fall, but becoming more like gold and bonds,” Bloomberg Intelligence commodities analyst Mike McGlone wrote in a report this week, adding that “strong headwinds” are affecting high-risk assets as the Federal Reserve continues to tighten monetary policy. to slow down inflation.
However, the Federal Reserve and market watchers are increasingly confident that the central bank will succeed in combating inflation in the coming months. Fed officials are currently considering whether to raise interest rates for the third time in a row by 75 basis points on 20-21. at the September policy meeting or a 50-point increase. Next week, the latest US consumer price inflation data will show whether the Fed’s previous rate hikes have slowed price increases.
“It’s usually only a matter of time before the Fed’s funds gauge turns to cuts, and when it does, Bitcoin is poised to be the primary beneficiary,” McGlone wrote.
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The price of Bitcoin has broken out of its downtrend over the past week, and many in the crypto industry have been optimistic despite September being a historically difficult time for crypto markets.
“September has historically been a dark time for the price of bitcoin; over the same five-year period, Bitcoin has fallen an average of 8.5% in September,” Matt Senter, CTO of bitcoin rewards app Lolli, said in emailed comments.
“Given the Fed’s predictions of continued inflation and continued rate hikes, with crypto and equity markets hypersensitive to inflationary trends, this September is unlikely to be any different. However, the price of Bitcoin is expected to recover this year – likely dependent on easing inflationary pressures and the subsequent increase in investor confidence.”