Feds Minting May Trigger Prices of Major Cryptocurrencies To Surge

Forbes in it’s latest market analysis, has reported that the Federal Reserve’s massive money-printing program may trigger a sharp increase in the prices of major cryptocurrencies, such as Bitcoin, Ethereum, and XRP, as worries about the sustainability of the United States dollar grow.

Contributor at Forbes Billy Bambrough’s report explores the dynamics that may lead to the possible price increase of these digital assets. Bambrough emphasizes Wall Street and institutional investors’ growing interest in alternative investment options by highlighting Bitcoin’s impressive 200% price increase from the previous year.

Compared to digital gold, the flagship cryptocurrency has become a popular option for people wishing to protect themselves from inflation and other economic uncertainties. Data released by Forbes shows that Ethereum and XRP have also seen significant increases in value. The Ripple Labs-affiliated XRP has garnered notice for its emphasis on enabling adequate cross-border payments.

Federal Reserve, A Major Factor For Large Minting: Forbes Insists

According to the Forbes report, long-term worries about the stability of the U.S. dollar have been intensifying, worsened by factors like massive government expenditure and continuous money printing since the 2008 financial crisis.

Investors are looking into alternative assets due to the ongoing discussion about the stability of the U.S. dollar, and cryptocurrencies are gaining popularity as a respectable option. A report from Forbes says that the renewed BTC investment has helped push the market capitalization to $1.5 trillion, the double XRP market capitalization in 2022. 

Considering the bullish attributes surrounding the cryptocurrency, analysts at Forbes are anticipating that the Federal Reserve will commence a cut in the interest rates by next year. They will make a significant shift and release their tightening policy. This evolution is expected to act according to the most anticipated slowdown in the country’s inflation rate.

BTC To Reach $70,000 By 2024, XRP To Follow

Regarding the long-term effects on the value of fiat currencies, the Federal Reserve’s commitment to accommodative monetary policies—which include low-interest rates and large bond-buying programs—has sparked concerns.

According to Luke Nolan, a researcher at CoinShares, the prospective cut in the interest rates could lead to a significant positive impact on the price of BTC and its equivalent. He also predicted that with a maintained rally, the cost of BTC could reach $70,000 towards the end of 2024. Growth in the price of BTC is also expected to trigger the price of XRP, which is expected to follow the same positive upward movement.

Zach Pandl, the Ex Goldman Sachs Managing Director (MD), has warned that if the United States dollar devaluates, BTC may emerge as the next alternative global cryptocurrency. However, Pandl, who is now with Grayscale, said that gold and bonds have started noticing the changes, as well as Bitcoin. He added that the BTC has turned out to be the most preferred competitor should the dollar slack.

Pandl has greatly linked the COVID-19, which led to the long lockdown, followed by devastating economic implications as being responsible for the current fear in the stability of the United States dollar which is liable to collapse. 

Meanwhile, the global head of equity strategy at Jefferies, Christopher Wood, has joined the conversation, saying that the G7 central banks, including the Feds, won’t gently exit the unusual monetary policy. He added that they will maintain its commitment to the ongoing expansion of the balance sheet by the central bank somewhere.