Could the possible inflation turn of the US Federal Reserve serve as the impetus for a multi-trillion dollar explosion in the bitcoin market? As some of Wall Street’s top analysts see a dramatic change in monetary policy, their optimistic forecasts vary.
A new Forbes article claims that the stage may be prepared for an amazing comeback in the values of top digital assets including Bitcoin and XRP. The main impetus is As the Fed softens its aggressive posture, an estimated $6 trillion of shelved capital that might rush back into the market could find expression.
The Floodgates Could Open
This is not only some old crypto frenzy. Managing partner of Fundstrat Global Advisors Tom Lee sees the possibility for a once-in-a-generation event with transforming power. Should the Fed indicate that it has effectively curbed inflation, he said, people could witness trillions of dollars flooding back into the market in a couple of months.
‘Still Early’—Sudden $6 Trillion Fed Inflation Flip Predicted To Unleash A Bitcoin, Ethereum, XRP And Crypto Price Boom https://t.co/vYpsbgSq6l pic.twitter.com/doEjvOef58
— Forbes (@Forbes) May 15, 2024
Lee’s optimistic view stems from his belief that the Fed will shortly declare triumph in its fight against rapidly rising prices. With a 0.3% increase in April against a 0.4% increase in March, the recent decrease in the US consumer price index points to the central bank’s aggressive rate raising campaign perhaps having results.
Should that prove to be the case, Lee thinks it may set off a frenzy of investment activity with Bitcoin perhaps rising to $150,000 – more than twice its present price of about $71,000. And if history is any indicator, other cryptocurrencies such as XRP might travel in the same direction.
Crypto ETFs Provide Institutional Tailwind
The recent flood of crypto exchange-traded fund (ETF) approvals, which have let ordinary investors have access to digital assets, strengthens this optimistic thesis. Several well-known Bitcoin and Ethereum ETFs have debuted since January, offering institutional capital an important on-ramp.
XRP Poised For Resurgence?
After a protracted legal fight with the US Securities and Exchange Commission, XRP, the third-largest cryptocurrency by market capitalisation, will be the focus of all eyes as it has battled to recover its former highs.
Nonetheless, if the larger crypto market does truly start a parabolic climb driven by that $6 trillion in dormant capital, experts think XRP might be among the most profite. If Bitcoin meets Lee’s $150,000 aim, some are even hypothesising that the token would fly beyond the $1 mark and maybe reach even loftier heights.
Though XRP has been in the doldrums for some time, should this expected crypto boom come to pass, things might change in a heartbeat. XRP is ready for a significant comeback if the SEC issue seems fixed; we could see it recovering its former glory among the top-performing assets of the market.
Featured image from Getty Images, chart from TradingView
