Catalyst Could Spark a ‘Crazy’ Crypto Rally in 2023, Says Coin Bureau Cryptocurrency
A popular crypto analyst has said that the crypto market could experience a massive rally in 2023 depending on the actions of the US Federal Reserve.
In a new YouTube strategy session, the pseudonymous host of Coin Bureau recount its 2.18 million followers that a crypto bull rally hinges on whether the Fed reverses rate hikes next year.
Guy says the Fed’s suspension of interest rate hikes is one of the most important catalysts “that could end the bear market.”
He says the Fed is likely to pivot even though Powell said at the Fed’s last meeting on Dec. 14 that it may need to raise the rate beyond 5% to get inflation under control. The Fed raised rates this month by half a point after a string of other rate hikes this year, dragging the economy into recession. This increase brought the rate back into the range of 4.25% to 4.5%, the highest rate in about 15 years.
“There is no guarantee that the Fed will succeed in raising interest rates to 5% or more. This is because the higher interest rates rise, the greater the likelihood that something in the financial system will break.
However, Guy says that if Fed Chairman Jerome Powell does not pivot, the crypto market will implode.
“If the Fed continues with its 2023 rate hikes, then it’s not going to be good. The crypto market will continue to crash until the Fed pauses and will only start to recover once that the Fed will have pivoted.
If rates rise as expected, Guy says crypto markets will continue to suffer as “money will continue to flow out of the financial system to pay off increasingly expensive debt and less money will be created due to costs of higher credit.”
Guy says a pivot “seems more likely than not” which would end the bear market and trigger a bull run.
“If the Fed is forced to pivot because of a problem in the financial system, then crypto will rally like crazy.”
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