Crypto Now Primed For A Fed Earthquake After Huge $1 Trillion Price Crash Tanked Bitcoin, Ethereum, BNB, Solana, Cardano, XRP, Tron And Avalanche

BitcoinBitcoin
and cryptocurrency prices have leveled off after a huge crash in April wiped out around $1 trillion from the combined crypto market – sparked by a major crypto meltdown and the increasingly hawkish stance of the Federal Reserve.

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Bitcoin price has fallen to a low not seen since last summer and is hovering around $30,000 per bitcoin. Ethereum and smaller cryptocurrencies BNBBNB
Solana, Cardano, XRPXRP
Tron and Avalanche have been hit even harder by the sell-off as Ethereum price has fallen more than 60% from its all-time highs.

Now, as the Fed presses ahead with its anti-inflationary rate hikes and balance sheet trimming program, a closely watched crypto analyst has predicted that Bitcoin will be “one of the best assets in the world” once risky assets start to recover and the Fed turns dovish.

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“I think some of the best assets are going to be gold, US long bonds and bitcoin,” said Mike McGlone, senior commodities strategist at Bloomberg Intelligence Kitco Newsand reiterated his Bitcoin price prediction of $100,000 by 2025. “The big reversal is just beginning.”

Although bitcoin may be trending down in the short-term, McGlone said he expects bitcoin price and Ethereum price to eventually “outperform.”

“Right now I fully expect bitcoin to trade lower. I don’t know how much lower… But what I fully expect is that by the time we see the inception form that’s going to happen, Bitcoin and Ethereum should come out on top because they’ve outperformed for so long.”

The Fed announced late last year that it would raise interest rates to combat persistently higher-than-expected inflation. Inflation eased slightly to 8.3% in April, but remains at multi-decade highs.

The threat of higher interest rates – which had been pushed to historic lows by the Covid-19 pandemic – sparked an ongoing stock market and crypto sell-off, with tech companies that had risen through the pandemic era leading the declines.

“Federal Reserve rate hikes address the need for inflation and risky assets to fall, and once things stabilize, we see bitcoin on the rise,” McGlone wrote in a note this week.

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This week, billionaire investor Ray Dalio said he expects the Fed and central banks around the world to hit the global economy once 2024 starts cutting interest rates again due to stagflation – a combination of high inflation and low growth.

“We are in a mode of tightening that may result in corrections or downside moves in many financial assets,” said Dalio, founder and co-CIO of Bridgewater Associates Australian Financial Report. “The pain of this will be great and that will force central banks to ease again, probably just ahead of the next presidential election in 2024.”

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