Only ‘a matter of time’: Crypto ‘wild card’ now poised for massive Fed bomb after Bitcoin, Ethereum, BNB, XRP, Solana, Cardano and Dogecoin price rally
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Bitcoin price, up nearly 10% from the same time last week and back above the closely watched $20,000 level, rallied despite several warnings of falling prices. The price of other top ten cryptocurrencies including Ethereum, BNB
Now, with the US Federal Reserve eyeing another interest rate hike in September, one analyst has predicted it’s “only a matter of time” before the Fed changes course, with bitcoin being ” about to be the main beneficiary”.
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“Bitcoin is a wildcard that’s more ripe to outperform when stocks are bottoming, but moving to look more like gold and bonds,” wrote Mike McGlone, commodities analyst at Bloomberg Intelligence. a report this week, adding that there is a “strong headwind” 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 convinced that the Fed will succeed in its war against inflation in the months ahead. Fed officials are currently debating whether to opt for a third consecutive 75 basis point interest rate hike at the September 20-21 policy meeting or a 50 basis point hike. Next week, the latest consumer price inflation (CPI) data from the United States will show whether past interest rate hikes from the Fed have slowed the rise in prices.
“It’s usually a matter of time for the federal funds gauge to swing into cuts, and when it does, bitcoin is poised to be the biggest beneficiary,” McGlone wrote.
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Bitcoin price broke its downward trend over the past week, with many crypto industry players feeling optimistic despite September being a historically tough time for the crypto market.
“September has always been a dark time for the price of bitcoin; over the same five-year period, bitcoin saw an average decline of 8.5% in September,” said Matt Senter, chief technology officer of the bitcoin Lolli rewards app, in email comments.
“Given the Fed’s projections of persistent inflation and continued rate hikes, with crypto and equity markets hypersensitive to inflationary trends, this September is likely to be no different. However, bitcoin price is likely to whether to rebound this year will likely hinge on an easing of inflationary pressures and a subsequent increase in investor confidence.”
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