Fed Sweet Spot Could Be About To Trigger $200 Billion Bitcoin Price Surge

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BitcoinBTC surged over $30,000 this week, outpacing a Q1 2023 rally that JPMorgan says may have a long way to go.

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The price of bitcoin has nearly doubled since hitting lows of just over $15,000 per bitcoin following FTX’s implosion last year despite an impending billion dollar earthquake. dollars.

Today, bitcoin and crypto investor Michael Novogratz said he expects the US Federal Reserve to trigger a $200 billion bitcoin price surge later this year.

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Bitcoin price exploded in 2023.

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“The clearest trades have been and will continue to be long gold, long euro, long bitcoin, long ethereum, those assets that should do well with the Fed halting the hike and then its reduction,” said Novogratz, chief executive of the bitcoin and crypto financial services firm. Galaxy Digital, Bloomberg told Bloomberg.

This week, minutes from the Fed’s March meeting suggest officials are on track to raise interest rates again next month while forecasting a “mild recession” later this year.

In early 2022, the Fed embarked on an interest rate hike program designed to calm inflation and began shrinking its balance sheet to suck liquidity out of the system, dragging higher risk assets like the bitcoin and tech stocks. However, the rapid increases sparked a banking crisis last month, forcing the Fed to recall expectations for further increases and triggering a rally in bitcoin, crypto and tech stocks.

“Bitcoin has had a huge run,” Novogratz said, highlighting bitcoin’s price rally so far this year and adding, “We can consolidate here before we go to $40,000, as long as the Fed plays like I think. that’s going to happen.”

An increase in bitcoin’s price to $40,000 would add around $200 billion to the cryptocurrency’s market capitalization, which is currently just under $600 billion.

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Bitcoin’s breach of $30,000 per bitcoin was cheered by market watchers this week, with some pointing to the times bitcoin broke through the psychological level.

“The $30,000 mark was significant for bitcoin in 2021 and the first half of 2022, acting as a shift in market mode,” FxPro principal market analyst Alex Kuptsikevich said in email comments.

“Last year, bitcoin consolidated around this price for about five weeks before plunging sharply. There is more chance of mirror momentum with bulls taking a long time to gather their strength before making a decisive upward move.”

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I am a journalist with significant experience covering technology, finance, economics and business worldwide. As founding editor of Verdict.co.uk, I reported on how technology is changing business, political trends and the latest cultures and lifestyles. I have covered the rise of bitcoin and cryptocurrency since 2012 and traced its emergence as a niche technology in the greatest threat to the established financial system the world has ever seen and new technology the more important since the Internet itself. I’ve worked and written for CityAM, the Financial Times, and the New Statesman, among others. Follow me on Twitter @billybambrough or email me at billyATbillybambrough.com. Disclosure: I occasionally hold a small amount of bitcoin and other cryptocurrencies.

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