Bitcoin And Crypto Now Braced For An Epic Fed U-Turn After $200 Billion Ethereum, BNB, XRP, Cardano, Dogecoin, Polygon And Solana Price Boom

Bitcoin And Crypto Now Braced For An Epic Fed U-Turn After $200 Billion Ethereum, BNB, XRP, Cardano, Dogecoin, Polygon And Solana Price Boom

BitcoinBTC, ethereum and other major cryptocurrencies have seen a $200 billion boom in the last two weeks—triggering a shock bitcoin price price prediction.

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The bitcoin price has come within touching distance of $28,000 per bitcoin, its highest since last summer. The bitcoin price rally has also boosted the ethereum price and other top ten cryptocurrencies BNBBNB, XRPXRP, cardano, dogecoin, polygon, and solana.

Now, after almost 200 U.S. banks were found to be dealing with similar pressures as the collapsed Silicon Valley Bank (SVBVB), the U.S. Federal Reserve is under pressure to ease back on its inflation-busting interest rate hike program—something that could push the bitcoin price and crypto market even higher.

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“As if they did not have enough with which to contend in the face of fighting inflation on one hand and fending off recession on the other, central banks must now confront the failure of SVB and any wider implications that has for the banking system, given that higher interest rates have played some role in putting the squeeze on that bank’s customers and then ultimately the bank itself,” Russ Mould, investment director at brokerage AJ Bell said in emailed comments.

“We will find out just how perturbed officials are—if indeed they are perturbed at all.”

Traders now expect the Fed to hike interest rates by just a quarter of a percentage point next week before rapidly reversing course and cutting rates later this year.

The shock collapse of SVB last week, as well as the closure of crypto-friendly Signaure Bank, sparked fears other banks could suffer a similar fate. Economists wrote in a study out this week that 186 banks across the country could be prone to similar risks as SVB. Troubled First Republic Bank was extended a lifeline by almost a dozen of its larger rivals in order to avert its implosion.

The bitcoin price has fallen sharply over the last year as the Fed ramped up interest rates at a historic pace to drive down soaring inflation—wiping around $2 trillion from the combined price of ethereum, BNB, XRP, cardano, dogecoin, polygon, solana.

The Fed’s response to the SVB-led banking crisis has caused expectations to surge the Fed is poised to reverse course and has already restarted quantitative easing—something some fear could trigger U.S. dollar hyperinflation and ultimately the collapse of the entire financial system.

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“Concerns stemming from a series of U.S. bank closures have subsided thanks to the Fed’s aid and now, with their balance sheet expanded 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 emailed note—pointing to bitcoin’s latest rally as potentially signaling the beginning of a new bull market.

“Although yields on treasury bonds have rebounded due to decreasing concerts for the economy, which leaves some room for the Fed to continue hiking rates. However, the reversal in the stock market sentiment has improved risk appetite, and it could boost the price of bitcoin further in the short term.”

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