Featured as one of the most successful assets in 2023, and once Bitcoin has hit $30k, one analyst believes the Federal Reserve could trigger a $200 billion bull run. Furthermore, Bloomberg reported Michael Novogratz’s expectations for an imminent development later this year.
Predictions are made after Bank of America forecast on the Bitcoin rally is likely to continue. Then, as the largest cryptocurrency by market capitalization resumes its current trajectory, the potential for an upward movement could be of great benefit to the industry.
Bitcoin ready for a Fed-backed boom?
After the terrible crypto winter that lasted into 2022, many people certainly have high expectations for next year. In particular, as FTX collapsed and the industry felt engulfed in fragility, the arrival of 2023 brought with it loads of excitement.
However, that excitement is mainly brought about by the performance of the most prominent cryptocurrency on the market. Now that Bitcoin (BTC) has hit $30,000, one analyst expects the Federal Reserve to trigger a $200 billion bull run for the digital asset, according to Cointelegraph. Forbes.
Later, crypto investor Michael Novogratz told Bloomberg that he expects the Fed to trigger developments by the end of the year. Furthermore, the root of the optimistic forecast seems to be the expectation that the Fed will end their year-long interest rate hike campaign.
Novogratz said: “The most obvious traders have been, are and will continue to buy gold, buy euros, buy Bitcoin, buy Ethereum – these assets will do well with the Fed stopping the bulls and curing.”
However, this prospect prevents the Fed from ultimately opting to end the rate hikes amid a likely recovery in inflation. On the contrary, it is still possible that they did not issue such a pause. Specifically, when the economy still seems to be fighting off ongoing inflation. However, as a banking crisis remains a reality, the options and outcomes look grim at this point.