Bitcoin And Crypto Now Poised For Epic U-Turn After $200 Billion Ethereum, BNB, XRP, Cardano, Dogecoin, Polygon And Solana Price Growth
BitcoinBTC, ethereum and other major cryptocurrencies have seen a $200 billion boom in the past two weeks – sparking a shock price prediction for bitcoin prices.
Subscribe now to Forbes’ CryptoAsset & Blockchain Advisor and successfully navigating the roller coaster of bitcoin and crypto market
Bitcoin price has come within touching distance of $28,000 per bitcoin, the highest since last summer. The Bitcoin price rally has also boosted the ethereum price and other top ten cryptocurrencies BNBBNB, XRPXRP, cardano, dogecoin, polygon and solana.
Now, after nearly 200 US banks were found to be dealing with similar pressures to the collapsed Silicon Valley Bank (SVBVB), the US central bank is under pressure to ease its anti-inflation rate hike program – which could push bitcoin price and the crypto market even higher.
It is in a brutal bear market that you need updated information the most! Sign up for free now CryptoCodex—A daily newsletter for traders, investors and the crypto-curious that will keep you ahead of the market
“As if they didn’t have enough to contend with in the face of fighting inflation on the one hand and staving off recession on the other, central banks must now confront SVB’s failure and any wider implications that has for the banking system, given that higher interest rates have played some role in pressuring the bank’s customers and ultimately the bank itself,” Russ Mould, chief investment officer at brokerage AJ Bell, said in an emailed statement.
“We want to find out how disturbed officials are – if indeed they are disturbed at all.”
Traders now expect the Fed to raise interest rates by just a quarter of a percentage point next week before quickly reversing course and cutting rates later this year.
The shock collapse of SVB last week, as well as the closure of crypto-friendly Signaure Bank, sparked fears that other banks could suffer a similar fate. Economists wrote in a study this week that 186 banks across the country may be exposed to similar risks as SVB. Troubled First Republic Bank was extended a lifeline by nearly a dozen of its larger rivals to stave off implosion.
Bitcoin price has fallen sharply over the past year as the Fed raised interest rates at a historic pace to reduce skyrocketing inflation – wiping about $2 trillion from the combined price of ethereum, BNB, XRP, cardano, dogecoin, polygon, solana .
The Fed’s response to the SVB-led banking crisis has raised expectations. The Fed is poised to reverse course and has already restarted quantitative easing – which some fear could trigger US dollar hyperinflation and the eventual collapse of the entire financial system.
Register now for CryptoCodex—A free, daily newsletter for the crypto-curious
“Concerns stemming from a series of US bank closures have subsided thanks to the Fed’s help, and now, with their balance sheet expanded by around $300 billion in a week, the market wants an effective end to the Fed’s quantitative easing,” Yuya Hasegawa, crypto market analyst at Tokyo -based Bitbank, wrote in an email message – pointing to bitcoin’s recent rally as potentially signaling the beginning of a new bull market.
“Although Treasury yields have rebounded due to slowing gigs for the economy, leaving some room for the Fed to continue raising interest rates. However, the reversal in stock market sentiment has improved risk appetite, and that could boost the price of bitcoin further on short term.”
Follow me on Twitter.
