The crypto is now poised for a massive Fed bomb that could wreak havoc with the price of Bitcoin, Ethereum, BNB, XRP, Cardano, Dogecoin, Polygon, and Solana

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BitcoinBTC, ethereum, and the top ten cryptocurrencies including BNBBNB, XRPXRP, cardano, dogecoin, polygon, and solana surged in 2023 with new hype emerging about a new “multi-billion dollar” opportunity.

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The price of bitcoin has soared nearly 50% since the start of the year, pushing the price of ethereum and other major cryptocurrencies higher, as traders brace for an earthquake in China.

Now, as analysts scour the latest economic data for signs of lingering inflation and a possible recession, influential investors have predicted that the US Federal Reserve could be on the verge of triggering another bitcoin bull run and of crypto.

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MORE FROM FORBESThis new crypto hype could be a ‘multi-billion dollar’ opportunity as the price of Bitcoin and Ethereum slideBy Billy Bambrough

The price of bitcoin surged in 2023, boosting the price of ethereum, BNB, XRP, cardano, dogecoin, … [+] polygon and solana and triggering a wave of bullish price predictions.

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“I’m super optimistic [for bitcoin and crypto] …because I believe in the answer of what the monetary and fiscal authorities will do in another unpleasant situation,” former BitMex CEO and veteran trader Arthur Hayes said in a YouTube interview. “They distribute money to people and they print it.”

However, Hayes warned that the price of bitcoin could fall back below $20,000 in the near term. “I think we were expecting a correlation at some point,” Hayes said. “By that I mean everything massively falls together, bitcoin included.”

The Fed’s ultra-loose monetary policy since the start of the Covid pandemic that saw interest rates cut to zero and trillions of dollars added to the Fed’s balance sheet helped propel the price of bitcoin to a high of nearly $70,000 per bitcoin in 2021.

As the Fed raised interest rates in an effort to bring down inflation over the past 12 months, bitcoin’s price crashed to below $16,000, wiping around $2 trillion from the market combined bitcoin, ethereum and crypto.

This year, traders have become increasingly convinced that the Fed has already won its war on inflation and will adopt a dovish stance if the economy falls into recession, triggering a rise in bitcoin prices that spreads to the ethereum and other major cryptocurrencies.

“The rally in prices around the world since October has been fueled by hopes that inflation will ease gently, that interest rate hikes will stop and then turn into rate cuts and that, as a result, the economy world would suffer nothing worse than a soft landing, or even start to take off once again after completely avoiding an encounter with the ground,” Russ Mould, chief investment officer at brokerage AJ Bell, said per E-mail.

“But investors are once again starting to wonder if such a trifecta is likely as economic data proves resilient, inflation (ex-energy) a bit sticky and central bank policymakers continue to talk about a tough game. So the current market concern seems to be that good news for the economy is therefore bad news for asset prices, as it could force interest rates higher for longer than expected, but the risk recession remains a risk that cannot be dismissed lightly either.”

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MORE FROM FORBESI Is this the real “mysterious” reason behind the sudden $100 billion price boom of Bitcoin, Ethereum and Crypto? By Billy Bambrough

Bitcoin price has suffered an almighty crash from its high of nearly $70,000 per bitcoin, but has… [+] climbed from recent lows this year, helping Ethereum, BNB, XRP, Cardano, Dogecoin, Polygon, and Solana rally.

Forbes Digital Assets

Earlier this month, Robert Kiyosaki, author of the financial advice book Rich Dad Poor Dad, predicted a “giant crash” is ahead for financial markets, with a “possible depression” forcing the Fed to “print billions”.

Kiyosaki said this scenario could push the price of bitcoin up to $500,000 per bitcoin. “Why? Because faith in the US dollar, counterfeit money, will be destroyed,” Kiyosaki posted on Twitter.

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