- May 22, 2024
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
Could the US Federal Reserve’s potential pivot on inflation be the catalyst for a multi-trillion dollar surge in the cryptocurrency market? That’s the bullish prediction from some of Wall Street’s top analysts as they eye a seismic shift in monetary policy.
According to a new report from Forbes, the stage may be set for a remarkable resurgence in the prices of leading digital assets like Bitcoin and XRP. The key driver? An estimated $6 trillion in sidelined capital that could come flooding back into the market as the Fed eases its hawkish stance.
The Floodgates Could Open
This isn’t just a typical crypto rally. Tom Lee, managing partner at Fundstrat Global Advisors, believes in the potential for a transformative, once-in-a-generation event. If the Fed signals that it’s successfully reined in inflation, he said people could see trillions of dollars rushing back into the market in a matter 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 bullish outlook is centered around the notion that the Fed will soon declare victory in its battle against soaring prices. The recent deceleration in the US consumer price index, with a 0.3% increase in April versus 0.4% in March, suggests the central bank’s aggressive rate hike campaign may be bearing fruit.
Should that prove to be the case, Lee believes it could ignite a frenzy of investment activity, with Bitcoin potentially surging to $150,000 – more than double its current price of around $71,000. And if history is any guide, other cryptocurrencies like XRP could follow a similar trajectory.
Crypto ETFs Provide Institutional Tailwind
Bolstering this bullish case is the recent wave of crypto exchange-traded fund (ETF) approvals, which have opened the door for mainstream investors to gain exposure to digital assets. Since January, a number of high-profile Bitcoin and Ethereum ETFs have launched, providing a crucial on-ramp for institutional capital.
XRP Poised For Resurgence?
All eyes will be on XRP, the third-largest cryptocurrency by market capitalization, which has struggled to regain its former highs after a protracted legal battle with the US Securities and Exchange Commission.
However, if the broader crypto market does indeed embark on a parabolic rally fueled by that $6 trillion in dormant capital, analysts believe XRP could be one of the biggest beneficiaries. Some are even speculating that the token could soar past the $1 mark – and potentially reach even loftier heights – if Bitcoin achieves Lee’s $150,000 target.
XRP has been in the doldrums for a while now, but that could all change in a heartbeat if this predicted crypto boom materializes. With the SEC issue seemingly resolved, XRP is poised for a major resurgence, and we could see it reclaim its former glory as one of the market’s top-performing assets.
Featured image from Getty Images, chart from TradingView
