Rajarshi Mitra
Independent Analyst
- CNBC reports that both Bitcoin and Gold tend to rally during financial turmoil.
- Peter Brandt predicts that Bitcoin will grow to as much as $100,000.
It is believed that the Federal Reserve is unintentionally propelling Bitcoin towards staggering new heights. Two days before Bitcoin re-entered the $10,000-zone, Federal Reserve Chairman Jerome Powell had announced the decision to maintain the benchmark for the federal fund’s interest rate, setting a target within a range of 2.25% to 2.5%. Many experts believe that the Federal Reserve has been pressured to cut the interest rate because of inflation and geopolitical risks.
CNBC notes that this financial turmoil has been “viewed as a positive for bitcoin as well as gold, which are looked at as alternative currencies that should rally when central banks take actions that reduce the value of government-backed currencies.”
Peter Brandt, a well-known technical analyst, believes the recent surge has Bitcoin primed to grow upto as much as $100,00:
“Bitcoin takes aim at $100,000 target. $btcusd is experiencing its fourth parabolic phase dating back to 2010. No other market in my 45 years of trading has gone parabolic on a log chart in this manner. Bitcoin is a market like no other.”
As of now, BTC/USD needs to overcome resistance at $11,200. Check out our price prediction report here.
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