Bitcoin Price Could Soar to $200K as Fed Prepares for Major Policy Change
As the Federal Reserve gears up for potential shifts in monetary policy, Bitcoin enthusiasts and market analysts are closely monitoring its impact on the cryptocurrency market. Bitcoin’s price, which has experienced subdued activity over the past six months, may see a major upswing, with some analysts forecasting significant moves in Q4 2023 and beyond.
In a recent interview with Altcoin Daily, Dennis Liu, a well-known crypto analyst, suggested that Bitcoin’s current low point could mark an opportunity for renewed investor interest. Liu emphasized Bitcoin’s cyclical nature, noting that it often aligns with the global money supply, particularly during bull cycles in 2017 and 2021, when the money supply (M2) expanded.
Liu also pointed to institutional adoption, including the highly anticipated launch of Bitcoin ETFs, as a key factor that could drive Bitcoin’s price higher in the next cycle. “We’ve seen this before,” he said, “and with more institutional players entering the space, we could see history repeat itself.”
The Federal Reserve’s potential interest rate cuts—widely expected over the next several meetings—could catalyze economic recovery, which is historically linked to Bitcoin’s price performance. Bitcoin has shown strong correlation with traditional markets like the S&P 500, which tends to recover 3 to 6 months after rate cuts.
As the market stabilizes, Liu projects Bitcoin could reach $100,000 by 2024, with the possibility of hitting $200,000 by the end of 2025, based on a total market capitalization of $4 to $5 trillion. Much of this depends on the broader economic environment, particularly how the Fed manages a “soft” or “hard” landing scenario.
Not all analysts share this bullish outlook. Economist Peter Schiff, a
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