$1 Million for 1 Bitcoin Possible Says This Report, Here’s Why
Bitcoin continues its upward trend as the global banking sector faces a crisis; the cryptocurrency has seen its best performance so far this year. The BTC price has pushed up due to a strengthening in the narratives and could see further upside ahead of a critical macroeconomic event.
At the time of writing, Bitcoin (BTC) is trading at $28,300 with sideways movement in the last 24 hours. The previous week, the cryptocurrency recorded a 17% gain, leading to the top 10 cryptocurrencies by market capitalization.
One Bitcoin, one bet, one macro event
According to trading desk QCP Capital, Bitcoin price is likely to remain on the rise. Tomorrow, the US central bank’s (Fed) Federal Open Market Committee (FOMC) decision to raise or cut interest rates will have a huge impact on Bitcoin and the global market.
Due to the current banking crisis, the FOMC and its takeaways could drive BTC higher while pushing other sectors to the downside. Unlike on previous occasions, QCP Capital believes the Fed must “hold firm” and raise interest rates by the expected 25 basis points (bps).
Anything else, especially a cut in this metric, could spook the market and send the wrong message. If the Fed cuts or comes out “too dovish”, the market could be affected by uncertainty that disrupts BTC’s short-term bullish potential. QCP Capital noted:
Ironically, our view is that the best the FOMC can do to calm the markets is a “business as usual” approach – raising interest rates by 25bp and keeping the dots (which means one increase this year). (…) we hope Powell would stay the course next week instead of channeling his best Arthur Burns flip-floppery – we all know what followed in the 1980s after that.
In addition, the trading desk referenced Balaji Srinivasan’s stake in Bitcoin, reaching $1 million in the next three months. The investor believes that the US economy is faltering, leading to hyperinflation in the dollar, pushing BTC to the $1 million level.
Balaji bet $2 million that the cryptocurrency would hit this mark. The current banking crisis and how the Fed has handled it by injecting more liquidity into the system tips the economic balance in Bitcoin’s favor.
The cryptocurrency is not likely to hit the $1 million level in 2023, let alone in 3 months, but the bullish thesis for BTC is gaining momentum. When banks crumble, Bitcoin soars. At least this has been the message that has been sent across the markets in the last two weeks. QCP Capital concluded:
This is a terrible precedent for future crises, where massive money printing will be the norm for generations to come. Perhaps it is possible to see BTC reach $1 million in this lifetime.
