Forbes: Fed Money Printing To Trigger Bitcoin, Ethereum, and XRP Price Surge

The recent surge in cryptocurrency prices, including Bitcoin (BTC), Ethereum (ETH), and XRP, has sparked discussions about the driving forces behind this market movement.

A recent Forbes report by Billy Bambrough points to the potential impact of the Federal Reserve’s monetary policy, particularly its money printing efforts, on Bitcoin (BTC), and other digital assets, such as Ethereum (ETH) and XRP.

Bambrough highlights the significant 200% increase in Bitcoin’s price since last year, attributing it to growing interest from Wall Street and investors seeking alternative investment options. This renewed interest has pushed the combined market capitalization of XRP and other cryptocurrencies over $1.5 trillion, a level not witnessed since 2022.

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Anticipated Market Rally and FED’s Role

Looking ahead, analysts foresee a potential acceleration in the crypto market rally in 2024. This prediction stems from the anticipated resumption of money printing by the FED, a move that could trigger the devaluation of the U.S. dollar and fuel a Bitcoin surge similar to gold’s historical response to such events.

Concerns about the U.S. dollar’s stability have been mounting for some time, driven by factors like expansive government spending and sustained money printing since the 2008 financial crisis. These concerns are further exacerbated by the prediction from Jefferies’ analysts that the FED will restart the money printer in 2024.

Cryptocurrency Market Outlook and Potential Impact

Should the U.S. dollar face devaluation, many believe Bitcoin will emerge as the natural alternative currency. This sentiment is echoed by Zach Pandl, a former Goldman Sachs managing director, who views Bitcoin as the “obvious competitor currency” in such a scenario.

Read Also: Crypto Bull Predicts 76,949% XRP Price Explosion To $470 and Surpass $25T Market Cap

Adding to the bullish sentiment around cryptocurrencies, analysts anticipate the Federal Reserve to begin a series of interest rate cuts next year, shifting from its current tightening policy. This change is expected to be a response to the anticipated slowdown in inflation.

According to CoinShares researcher Luke Nolan, potential interest rate cuts could have a significantly positive impact on Bitcoin’s price. He predicts a sustained rally, with a conservative estimate of reaching $70,000 by the end of 2024.

Such growth in Bitcoin is expected to have a ripple effect on other major cryptocurrencies like XRP, which could potentially experience a similar upward trajectory.

While the future of the crypto market remains uncertain, the recent surge and the potential for further growth driven by factors like FED policy changes paint an optimistic picture. The potential for Bitcoin to emerge as a viable alternative currency and the expected positive impact of interest rate cuts on crypto prices further support this optimism.

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