Fed ‘Sweet Spot’ May Be About to Trigger a $200 Billion Bitcoin Price Run
BitcoinBTC has surged above $30,000 this week, capping a rally in the first quarter of 2023 that JPMorgan believes may have a long way to go.
Subscribe now to Forbes’ CryptoAsset & Blockchain Advisor and successfully navigating the roller coaster of bitcoin and crypto market
Bitcoin price has nearly doubled since hitting a low of just over $15,000 per bitcoin in the wake of the FTX implosion last year despite a looming $1 billion earthquake.
Now, bitcoin and crypto investor Michael Novogratz has said he expects the US Federal Reserve to trigger a $200 billion price boom in bitcoin later this year.
It is at the beginning of a bull run 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
Bitcoin price has exploded into 2023.
SOPA Images/LightRocket via Getty Images
“The clearest trades have been and will continue to be long gold, long euro, long bitcoin, long ethereum — these assets that should do well with the Fed stopping hiking and then cutting,” Novogratz, CEO of bitcoin and crypto financial. service company Galaxy Digital, told Bloomberg.
This week, minutes from the Fed’s March meeting suggest officials are on track to raise interest rates again next month, while predicting a “mild recession” later this year.
In early 2022, the Fed embarked on a program of rate hikes designed to cool inflation and began cutting its balance sheet to siphon liquidity from the system, drawing on higher-risk assets such as bitcoin and technology stocks.
Register now for CryptoCodex—A free, daily newsletter for the crypto-curious
“Bitcoin had a tremendous run,” Novogratz said, pointing to bitcoin price gains so far this year, adding: “We could consolidate here before we move toward $40,000, as long as the Fed plays out the way I think it will to play out.”
An increase in the bitcoin price to $40,000 would add about $200 billion to the cryptocurrency’s market cap which is currently just under $600 billion.
Follow me on Twitter.
