Just ‘A Matter of Time’—Crypto ‘Wild Card’ Now Poised for Huge Fed Bomb After Bitcoin, Ethereum, BNB, XRP, Solana, Cardano and Dogecoin Price Rally
Bitcoin
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Bitcoin price, up nearly 10% this time last week and back above the closely watched $20,000 level, has rallied despite several price crash warnings. The price of other top ten cryptocurrencies—including ethereum, BNB
Now, as the US central bank considers another interest rate hike in September, one analyst has predicted that it is “only a matter of time” before the Fed changes course – with bitcoin “poised to be a primary beneficiary.”
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Bitcoin price has rebounded this week, boosting the price of other top ten cryptocurrencies … [+]
“Bitcoin is a wild card that is ripe for outperforming when stocks bottom out, but transitioning to become more like gold and bonds,” Bloomberg Intelligence commodities analyst Mike McGlone wrote in a report this week, adding that it is a “strong headwinds” affecting high-risk assets as the Federal Reserve continues to tighten monetary policy to bring down inflation.
However, the Federal Reserve and market watchers are increasingly confident that the Fed will succeed in its war on inflation in the coming months. Fed officials are currently considering whether to go for a third straight rate hike of 75 basis points at the policy meeting on 20-21. September or an increase of 50 basis points. Next week, the latest US consumer price inflation (CPI) data will show whether the Fed’s previous interest rate hikes have slowed price increases.
“It’s usually a matter of time before the Fed funds rate gauge turns toward cuts, and when it does, bitcoin is poised to be a primary beneficiary,” McGlone wrote.
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The Bitcoin price has fallen sharply this year, losing around 70% of its all-time value … [+]
Bitcoin price has broken out of its downtrend over the past week, and many in the crypto industry have been feeling bullish despite September being a historically tough time for the crypto market.
“September has historically been a dismal period for bitcoin’s price; over the same five-year period, bitcoin has averaged an 8.5% drop in September,” Matt Senter, chief technology officer at bitcoin rewards app Lolli, said in an e- postal message.
“Given the Fed’s projections of persistent inflation and continued rate hikes, with crypto and equity markets hypersensitive to inflationary trends, this September is unlikely to be any different. However, bitcoin’s price is on the way up again this year – this is likely to be dependent on reduced inflationary pressures and a subsequent increase in investor confidence.”
