Bitrabo Editorial
Are we on the verge of witnessing a massive surge in the cryptocurrency market, triggered by a potential change in inflation policy by the US Federal Reserve? Top analysts on Wall Street seem to think so, as they anticipate a substantial shift in monetary policy that could lead to a multi-trillion dollar rally.
As per a recent report by Forbes, there is speculation about a remarkable resurgence in the prices of major digital assets like Bitcoin and XRP. The driving force behind this surge is believed to be an estimated $6 trillion in sidelined capital that could re-enter the market as the Fed eases its hawkish stance.
Anticipating a Surge
This isn’t your average crypto rally. Tom Lee, managing partner at Fundstrat Global Advisors, envisions a potentially transformative event that occurs once in a generation. If the Fed gives a signal that it has successfully controlled inflation, Lee predicts a rush of trillions of dollars pouring back into the market within months.
‘Still Early’—Sudden $6 Trillion Fed Inflation Flip Predicted To Unleash A Bitcoin, Ethereum, XRP And Crypto Price Boom pic.twitter.com/doEjvOef58
— Forbes (@Forbes) May 15, 2024
Lee’s optimism revolves around the belief that the Fed will soon announce victory in the battle against rising prices. The recent moderation in the US consumer price index, showing a 0.3% uptick in April compared to 0.4% in March, indicates that the central bank’s intensive rate hike strategy may be yielding results.
If this scenario plays out, Lee predicts a frenzy of investment activities, potentially propelling Bitcoin to $150,000 – more than double its current value of around $71,000. Drawing from historical patterns, other cryptocurrencies like XRP could likely follow a similar path.
Boost from Crypto ETFs
Adding to the bullish outlook is the recent approval of crypto exchange-traded funds (ETFs), which have paved the way for mainstream investors to enter the digital asset space. Since January, several prominent Bitcoin and Ethereum ETFs have been launched, providing a vital entry point for institutional funds.
XRP Ready for a Comeback?
All eyes are on XRP, the third-largest cryptocurrency by market cap, which has been striving to regain its previous highs following a prolonged legal tussle with the US Securities and Exchange Commission.
However, if the broader crypto market embarks on a skyrocketing rally driven by the $6 trillion in dormant capital, analysts speculate that XRP could be one of the primary beneficiaries. Some even suggest that the token could surpass the $1 mark – possibly reaching even higher levels – if Bitcoin attains Lee’s projected target of $150,000.
XRP has been facing challenges for some time now, but the anticipated crypto boom could turn the tide in its favor. With the SEC issue seemingly settled, XRP is set for a major resurgence, potentially reclaiming its status as one of the top-performing assets in the market.
Featured image from Getty Images, chart from TradingView