Home Cryptocurrency Fed Chair Powell Has Quietly Primed Bitcoin And Crypto For A Huge $3.3 Trillion Price Boom

Fed Chair Powell Has Quietly Primed Bitcoin And Crypto For A Huge $3.3 Trillion Price Boom

by admin

BitcoinBTC and cryptocurrencies have rocketed higher over the last year, with traders now looking to a surprise development in China for the next price move.

Subscribe now to Forbes’ CryptoAsset & Blockchain Advisor and “uncover blockchain blockbusters poised for 1,000% plus gains” ahead of next year’s historical bitcoin halving!

The bitcoin price has settled at just over $40,000 per bitcoin, up almost 200% since crashing to recent lows of around $15,000 in late 2022 (though billionaire investor Mark Cuban has revealed he’s betting on these two small cryptocurrencies.

Now, as Federal Reserve chair Jerome Powell signals U.S. interest rates should begin to fall later this year, hedge fund manager Anthony Scaramucci has predicted the bitcoin price will surge to at least $170,000 per bitcoin after its April supply cut—which would give bitcoin a market capitalization of around $3.3 trillion.

Bitcoin’s historical halving that’s expected to cause crypto price chaos is just around the corner! Sign up now for the free CryptoCodexA daily newsletter for traders, investors and the crypto-curious that will keep you ahead of the market

MORE FROM FORBESNot Bitcoin Or Ethereum: Billionaire Mark Cuban Reveals The Two Small Cryptos He’s Bought Amid Huge 1,000% Price Surge

“Go back and look at bitcoin halving cycles,” Scaramucci, the founder of Skybridge Capital who briefly served as former U.S. president Donald Trump’s communications director, said during a podcast with trader Scott Melker.

“The day that Bitcoin halves, multiply it by four [and] 18 months later and it’s been uncanny that that’s been the price of bitcoin. I’m using a $35,000 number at the halving and that’s conservative … Let’s say we’re at $50,000 in April, then it’s a $200,000 handle. Let’s say we’re at $60,000, it will be $240,000.”

Bitcoin’s next halving, its next fourth, will reduce the number of bitcoin issued to so-called miners in exchange for securing the network to 3.125 bitcoin, down from just over six currently.

“My long-term price target is that bitcoin gets to easily half of the market capitalization of gold,” Scaramucci said. “Gold is now at $14.5 trillion. If bitcoin goes to $7 or $8 trillion, that’s a 10x from here. It’s a $400,000 Bitcoin, and I think it would be ridiculous for people not to understand the asset, not to understand the dynamics of it as a store of value and not to have a position.”

Meanwhile, traders are gearing up for a Fed interest rate cut that could mark the beginning of quantitative easing at around the same time as bitcoin’s halving.

Sign up now for CryptoCodex—A free, daily newsletter for the crypto-curious

MORE FROM FORBESThe U.S. Dollar Is ‘Finished’-Wall Street Legend Warns Trump’s And Biden’s China Nightmare Is Suddenly Coming True

“Bitcoin prices have realigned with futures market interest rate expectations, suggesting that bitcoin will become more responsive to interest rate sensitive macro data, such as payrolls and [consumer price index], especially as the excitement surrounding ETFs diminishes,” CoinShares head of research James Butterfill told The Block following Powell’s press conference and referring to the fleet of bitcoin spot exchange-traded funds (ETFs) that began trading last month.

“The first rate cut will mean the beginning of the quantitative easing policy, and it is very important what the macro background would be at that particular moment,” Ruslan Lienkha, chief of markets at crypto company YouHodler, said in emailed comments.

“If the economy is in recession at that time, we will experience a drop in stocks and many other markets because investors will try as quickly as possible to move their capital to the bond or money market to fixate high interest rates for the following years. But in the case of a soft landing, markets will grow and boost risky assets, expecting cheaper money inflow in the near future.”

Follow me on Twitter

You may also like

Leave a Comment