BitcoinBTC has fluctuated wildly this week as traders worried about whether the Federal Reserve will surprise markets.
Subscribe now Forbes' CryptoAsset and Blockchain Advisor and “Discover Blockchain Blockbusters Poised for 1,000%+ Gains” Ahead of the Upcoming Bitcoin Halving Quake!
Bitcoin price has risen back towards $70,000 per bitcoin after plunging towards $60,000, even as crypto price data showed Bitcoin could see its highest month ever.
Now, as the Bitcoin and crypto market prepares for a “major” earthquake in China, Fed Chairman Jerome Powell has announced a rate cut this year – just as the supply of Bitcoin will be reduced as part of the planned so-called halving becomes .
Register now for the free CryptoCodex—A daily five-minute newsletter for traders, investors and cryptocurrency enthusiasts to keep you informed and updated on the bull market in the Bitcoin and cryptocurrency markets
Federal Reserve Chairman Jerome Powell has indicated that interest rates will begin to fall this year. … [+]
Getty Images
“Federal Reserve Chairman Jerome Powell yesterday warned of the risk that rate cuts will have to be delayed due to stubborn inflationary pressures, although there was enough to reassure investors that a rate cut is imminent at some point this year,” said Russ Mold, investment director at brokerage AJ Bell, said in emailed comments.
Earlier this week, Louis Navellier, founder of Navellier & Associates, wrote in a note seen by MarketWatch that the bitcoin and crypto market “seems to be holding its breath, waiting for interest rates to unwind some of their increases.”
“Bitcoin continues to struggle to maintain levels above its old high, and the entire crypto sector reeled as interest rates spiked,” Navellier added.
Last month, analysts at Deutsche Bank predicted that a Fed rate cut in June would boost risk appetite and market liquidity. “As government bond yields fall, more investors are likely to look for alternative, higher-yielding assets. This flow of capital into non-traditional asset classes such as cryptocurrencies could further support a sustained rally in digital currency prices,” they wrote.
Meanwhile, Bitcoin is racing toward the next halving, the fourth such supply cut, which will see the number of new Bitcoins issued to so-called miners maintaining the network fall to 3,125 Bitcoins per block from the current 6.25.
Sign up for CryptoCodex now– A free, daily newsletter for those interested in crypto
Bitcoin price has skyrocketed despite the Federal Reserve tightening its monetary policy throughout the year … [+]
Forbes Digital Assets
The next Bitcoin halving is scheduled for April 22nd, but will likely be delayed by a few days. Historically, Bitcoin price has risen in the months following its previous halvings.
“The halving is a very strong growth driver for the Bitcoin price and is partly already built into the price, but there is still great potential for further growth in the long term,” said Ruslan Lienkha, head of market at YouHodler in an emailed statement Comments.
“In fact, it is the halving that will fundamentally support the Bitcoin price in future corrections: if mining costs rise and there is a price drop, some miners may decide to stop mining due to unprofitability; the shrinking supply will in turn support the Bitcoin price.”
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.