Fed Pivot Set to Inject $6 Trillion into Cryptocurrency Market, Boosting BTC, ETH, XRP, ADA, and More
Wall Street analysts are anticipating a possible shift in Federal Reserve policy that could have a significant impact on the cryptocurrency market. This optimistic outlook is based on the Fed’s ability to manage inflation, a success that could potentially release an estimated $6 trillion in sidelined capital back into the market. Experts believe that a portion of this capital could find its way into the cryptocurrency space, leading to a surge in assets like Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Cardano (ADA), and more.
One analyst, Tom Lee from Fundstrat Global Advisors, envisions this turning point as a transformative event, describing it as a once-in-a-generation opportunity. If the Fed signals victory over inflation, Lee predicts that trillions of dollars could flow back into the market within a matter of months.
Lee’s optimism is supported by recent signs of progress in taming inflation. The April Consumer Price Index (CPI) showed a deceleration, with a 0.3% rise compared to 0.4% in March. This indicates that the Fed’s aggressive monetary policy might be proving effective.
In the event of a Fed pivot, Lee believes there could be a frenzy of investment activity, potentially driving the price of Bitcoin to skyrocket to $150,000, more than double its current value of around $71,000. Similar trajectories have historically been observed for other major cryptocurrencies like XRP.
Recently, Ethereum experienced a significant price surge of over 20% in just one day, contributing to a market-wide increase of over $200 billion. This surge was triggered by positive news surrounding the potential approval of spot Ether exchange-traded funds (ETFs) in the United States. The Securities and Exchange Commission (SEC) requested key filings related to these products, leading to speculation about their potential approval.
XRP, which has been struggling to regain its former highs due to its legal battle with the SEC, could also benefit from the potential influx of $6 trillion into the cryptocurrency market.
It’s evident that the cryptocurrency market is keeping a close watch on the Federal Reserve’s next move, as it could have a profound impact on the future of digital assets.