Bitcoin BTC

Lack of confidence in the economy has continued to weigh on the bitcoin market. The largest cryptocurrency, Bitcoin BTC, has dropped by over 50% from its all-time high. As of this writing, one bitcoin is worth $19,141, a decrease of about 2% in the past 24 hours.

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However, a reliable source claims that Bitcoin and the rest of the cryptocurrency sector is about to experience meteoric growth.

The Reasons Bitcoin (BTC) Price Will Explode

According to University of Pennsylvania professor Jeremy Siegel, the stock market is now undervalued and will surge by 20-30% during the next year. He thinks the Federal Reserve is smothering investor confidence.

There is an extremely high degree of correlation between the cryptocurrency market and the stock market overall. In example, Bitcoin has a high correlation with the technology-focused NASDAQ-100 index. Crypto assets, as measured by Coinbase Research, are 2 times more volatile than the market as a whole, or beta 2. To put it another way, the price of cryptocurrency will fluctuate twice as much as the market as a whole. By this measure, Bitcoin is comparable to the performance of oil and tech equities.

According to data compiled by Coinbase:

The crypto business was less to blame for the winter than the broader economic climate.

Massive selling pressure was exerted on the cryptocurrency market as a result of the Federal Reserve’s hawkish posture and interest rate hikes. On the other hand, the Fed’s position has increased the possibility of a recession. Siegel argues that the danger of a recession is greater than the price of inflation.

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The Federal Reserve will soon reverse course if it continues to act in accordance with long-term patterns, he adds. He thinks the Fed should be patient and let the interest rate increase take effect.

Siegel’s outlook on the stock market has always been optimistic. But he isn’t the only one who thinks the crypto business is going to explode in the future. CoinGape had earlier indicated that numerous “whales” were long Bitcoin.

If The Fed Makes A Turn

If the Federal Reserve stops raising interest rates or changes course, Bitcoin will rise. Siegel disagrees with the Fed’s current stance and thinks it will soon do a U-turn. At the FOMC meeting, Fed officials emphasised that doing too little would result in greater damage than doing too much in terms of lowering inflation.

Source: google Trend

By Vil Joe

A writer and editor based out of San Francisco, Vil has worked for The Wirecutter, PCWorld, MaximumPC and TechHive. Her work has also appeared on InfoWorld, MacWorld, Details, Apartment Therapy and Broke-Ass Stuart. In her spare time, she takes too many pictures of her cats, watches too much CSI and obsesses over her bullet journal.

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