Bitcoin and crypto are now preparing for an epic Fed reversal after the $200 billion price boom of Ethereum, BNB, XRP, Cardano, Dogecoin, Polygon and Solana
BitcoinBTC, Ethereum and other major cryptocurrencies have seen a $200 billion boom over the past two weeks, sparking a shocking Bitcoin price prediction.
Subscribe to now to Forbes CryptoAsset and Blockchain Advisor and successfully navigate the rollercoaster of the bitcoin and crypto market
Bitcoin price is within reach of $28,000 per bitcoin, its highest level since last summer. Bitcoin price rally has also boosted Ethereum price and other top ten cryptocurrencies BNBBNB, XRPXRP, Cardano, Dogecoin, Polygon and Solana.
Now, after finding that nearly 200 US banks are facing similar pressures as the collapsed Silicon Valley Bank (SVBVB), the US Federal Reserve is under pressure to ease its inflation-busting rate-hike program — something that has hurt bitcoin’s price and Crypto market even higher.
In a brutal bear market, what you need most is the latest information! Sign up now for free CryptoCodex—A daily newsletter for traders, investors and crypto curious people to stay ahead of the market
“As if they didn’t have enough to contend with on the one hand fighting inflation and on the other hand staving off a recession, central banks are now having to grapple with the failure of the SVB and all the wider implications that that has for the banking system that higher interest rates have some.” played a role in putting pressure on that bank’s customers and ultimately the bank itself,” said Russ Mold, investment director at brokerage AJ Bell, in emailed comments.
“We’ll find out how concerned officers are — if they’re worried at all.”
Traders now expect the Fed to hike rates by just a quarter of a point next week before quickly reversing course and cutting rates later this year.
The shocking collapse of SVB last week, as well as the shutdown of crypto-friendly Signaure Bank, have raised fears that a similar fate could befall other banks. Economists wrote in a study this week that 186 banks across the country could face risks similar to the SVB. The troubled First Republic Bank has had a lifeline extended by nearly a dozen of its larger peers to avert its implosion.
Bitcoin price has fallen sharply over the last year as the Fed hiked interest rates at an historic pace to curb rising inflation – and around $2 trillion from the combined price of Ethereum, BNB, XRP, Cardano, Dogecoin, Polygon and Solana wiped.
The Fed’s response to the SVB-led banking crisis has sparked a spike in expectations. The Fed is poised to reverse course and has already resumed quantitative easing – something some fear could trigger hyperinflation in the US dollar and ultimately the collapse of the entire financial system.
Sign up now CryptoCodex—A free, daily newsletter for those curious about crypto
“Concerns over a string of US bank closures have eased thanks to Fed help, and now that its balance sheet has expanded by about $300 billion in a week, the market is welcoming an effective end to the Fed’s quantitative tightening,” Yuya Hasegawa, crypto market analyst at Tokyo-based Bitbank, wrote in an email message – noting Bitcoin’s recent rally potentially signaling the start of a new bull market.
“Although Treasury yields have recovered on the back of slacking concerts for the economy, giving the Fed some leeway to hike rates further. However, the reversal in stock market sentiment has improved risk appetite and could push Bitcoin’s price higher in the short-term.”
follow me Twitter.
