Bitcoin BTC and crypto prices have rebounded from the 2022 price crash (a “paradigm shift” in the US dollar that could shake up the financial system is underway).
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Bitcoin prices have risen about 80% in the past 12 months, and this week JPMorgan released a surprising Bitcoin price prediction.
Now, with President Donald Trump quietly leaning towards Bitcoin and cryptocurrencies, markets are bracing for the US Federal Reserve to cut off the funding lifeline for banks and are watching closely. One trader warns that it could trigger a “financial crisis” and force the Fed to reopen. A money printer.
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“BTFP suspension [bank term funding program] Will cause a mini-financial crisis, forcing the Fed to stop “talkin’” and start “yellen” with rate cuts and QT reductions [quantitative tightening]and/or restart money printing through quantitative easing (QE),” said Arthur Hayes, founder of cryptocurrency derivatives pioneer BitMEX and now chief investment officer of a fund called Maelstrom. said in a blog post.
“Bitcoin price action tells me I'm right and they're wrong,” Hayes wrote, pegging his short-term Bitcoin price prediction from $30,000 to $30,000 before a rebound later this year. It cost between $5,000. “The Fed is so scared of inflation that it would rather gut the market with speeches and Wall Street Journal op-eds.”
The Federal Reserve this week will end in March the $160 billion bank term funding program created with the approval of Treasury Secretary Janet Yellen during last year's U.S. banking crisis, which nearly descended into a full-blown bank meltdown. confirmed the rumor.
The banking crisis was sparked by the Fed's rapid series of interest rate hikes as inflation soared and pressure increased on banks' balance sheets, which had been overextended by coronavirus-era ultra-loose monetary policy. It is widely believed that
Mr Hayes predicted banks would continue to struggle “until interest rates are lowered”, adding: “Without government support through the BTFP, there is no way these banks will survive.”
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Meanwhile, Bitcoin and crypto traders who have been caught up in Wall Street's spot Bitcoin exchange-traded fund (ETF) frenzy in recent months are starting to move away from tracking the flow of Bitcoin ETFs.
“Even if Bitcoin ETF inflows are disappointing, now is a bearish time as the macro environment continues to be favorable in 2024 and the US election cycle sees constructive fiscal stimulus to boost asset prices.” “No,” said director Markus Thielen. 10X Research wrote about their findings in a report sent via email.
“Below $38,000, the ETF hype will be completely discounted and Bitcoin may return to its macro and liquidity tone.The bearish period is early January, when Bitcoin was trading at $44,000. That's when we called for a correction to $36,000/$38,000' to take advantage of further declines and start buying again. ”
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