“Massive Fourth Quarter” – Why Ethereum Could Outperform Bitcoin After Serious Fed Price Warning

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Both bitcoin and crypto prices have fallen sharply over the past month, with the price of bitcoin dropping 25%, although some are predicting the United States may ’embrace cryptocurrency in 2022′.

The bitcoin price crash, which has driven the price of ethereum and other cryptocurrencies, has seen some $ 600 billion wiped out of the combined crypto market over the past month.

Today, in the face of the increasingly hawkish attitude of the Federal Reserve towards 2022, billionaire investor Mike Novogratz has said he expects the price of Ethereum to surpass bitcoin. as the Fed seeks to fight inflation.

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“People see ethereum as a tech bet and bitcoin more as a debasement of the fiat money bet,” Novogratz said, speaking on CNBC this week ahead of the latest Consumer Price Index data. which showed that prices rose 6.8% in the year through November, taking annual inflation to its highest level in 40 years.

Soaring inflation has sparked speculation that the Fed will reduce its historic support for multi-billion dollar bond purchases faster than expected and pending a series of rate hikes of interest next year.

“[When the Fed starts to taper] in a lot of ways, that’s why you see Ethereum outperforming bitcoin, ”Novogratz said. “If you look at the price of Ethereum, Ethereum is still trading higher. [compared to bitcoin]. “

The price of bitcoin has been left in the dust by Ethereum’s huge price hike over the past year. The price of ethereum has risen by around 650% since December of last year, compared to bitcoin’s nearly 200% rally. Meanwhile, many Ethereum rivals have climbed much higher as investors bet they could win over Ethereum blockchain users.

The craze for non-fungible tokens (NFTs) and decentralized finance (DeFi), both largely based on Ethereum’s blockchain, is believed to be the main driver behind Ethereum’s boom in the past year.

Meanwhile, Novogratz expects the crypto and equity markets to have “a monster fourth quarter” as it “looks like this is the latest wave of” we have to make our money work. “

However, “crypto doesn’t trade as bullish as stocks because you see this tension, that the Fed is going to take alcohol out of the punch bowl much sooner than we thought,” Novogratz said. “Overall this shouldn’t be good for risky assets.”

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The price of ethereum has lost around 13% from the same period last month but has not fallen as sharply as … [+] the price of bitcoin.

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Longer term, Novogratz remains bullish on bitcoin, ethereum and the crypto market in general, indicating new interest from institutional investors and regions like the Middle East.

“New players are lining up to participate in the crypto economy,” Novogratz said, adding that he didn’t see the price of bitcoin falling below $ 40,000.

“From the Middle East, all over the United States, pension funds (…)

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