Only A Matter Of TimeCrypto Wild Card Now Poised For A Huge Fed Bombshell After Bitcoin, Ethereum, BNB, XRP, Solana, Cardano And Dogecoin Price Rally

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BitcoinBTC and cryptocurrency prices have rebounded this week, climbing despite a serious US ban proposal.

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The bitcoin price, up almost 10% on this time last week and back above the closely-watched $20,000 level, has rallied despite multiple price crash warnings. The price of other top ten cryptocurrenciesincluding ethereum, BNBBNB , XRPXRP , solana, cardano and dogecoinhave also surged as ethereum’s long-awaited upgrade gets underwaysomething some think could be disastrous for bitcoin.

Now, as the US Federal Reserve mulls another interest rate hike in September, one analyst has predicted it’s “only a matter of time” before the Fed changes course with bitcoin “poised to be a primary beneficiary.”

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The bitcoin price has rebounded this week, boosting the price of other top ten cryptocurrencies … [+] ethereum, BNB, XRP, solana, cardano and dogecoin.

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“Bitcoin is a wild card thats more ripe to outperform when stocks bottom, but transitioning to be more like gold and bonds,” Bloomberg Intelligence commodity analyst Mike McGlone wrote in a report this week, adding there is a “strong headwind” affecting high- risk assets as the Federal Reserve continues to tighten monetary policy to drive down inflation.

However, Federal Reserve and market watchers are increasingly confident the Fed will succeed in its war against inflation within coming months. Fed officials are currently weighing whether to go for a third straight 75-basis-point interest rate hike at the September 20-21 policy meeting or a 50-basis-point rise. Next week, the latest US consumer price inflation (CPI) data will show whether the Fed’s earlier interest rate hikes have slowed price rises.

“Its typically a matter of time for the Fed funds gauge to flip toward cuts, and when it does, bitcoin is poised to be a primary beneficiary,” McGlone wrote.

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The bitcoin price has fallen sharply this year, losing around 70% of its value from its all-time … [+] high of almost 70%dragging down the price of ethereum, BNB, XRP, solana, cardano and dogecoin.

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The bitcoin price has broken out of its downward trend over the last week with many in the crypto industry feeling upbeat despite September being a historically tough time for the crypto market.

“September has historically been a bleak period for bitcoins price; during the same five-year period, bitcoin has averaged an 8.5% drop in,” Matt Senter, chief September technology officer at bitcoin rewards app Lolli, said in emailed comments.

“Given the Feds projections of persistent inflation and continued rate hikes, with the crypto and equity markets hyper-sensitive to inflationary trends, this September likely wont be any different. However, bitcoins price is due for a rebound this yearthis will likely be contingent on diminished inflationary pressures and a subsequent increase in investor confidence.”

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