In the wake of Federal Reserve Chairman Jerome Powell’s highly anticipated speech, Bitcoin (BTC) maintained a steady course on Wednesday as the Fed opted to keep interest rates unchanged at 5.25%-5.50%.
Crypto market awaits the Fed’s next move
Powell hinted at the possibility of rate cuts in September, depending on economic performance in the weeks leading up to that month, during a press conference in Washington DC.
“We have not made any decisions regarding future meetings and that includes the September meeting,” Powell said declared. “We are getting closer to the point where we will cut our policy rate, but we are not quite there yet.”
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In response to the Fed’s stance, crypto analysts have weighed in on the implications for the digital currency space, with Michael van de Poppe, founder of MN Capital, expressing optimism about Powell’s “softening outlook,” suggesting a rate cut in September remains a strong possibility. .
In his social media messageVan de Poppe expressed confidence that this development bodes well for both Bitcoin and altcoins, in view of the upcoming decision expected in September.
Similarly, another analyst, Daan Crypto Trades, underlined Powell’s indication of a possible rate cut in September, project a high probability of its realization, unless significant deviations occur after measurements of the consumer price index (CPI).
With 48 days to go until the September meeting, Daan Crypto Trades suggested that market dynamics could revolve around this upcoming decision, potentially triggering short-term swings after the initial interest rate adjustment in September.
Bitcoin will reach $1 million by 2028?
In a recent social media post, Timothy Peterson, a Bitcoin writer and researcher, revealed a major prediction for the largest cryptocurrency on the market that, if held true in time, could result in the price of BTC reaching unprecedented heights .
According to According to Peterson, the Bitcoin price is directly and exponentially proportional to the square root of the number of halvings the network has undergone. In other words, the amount of new BTC put into circulation is halved approximately every four years, a process known as halving.
“A combination of adoption curve math and Metcalfe’s law will push Bitcoin’s price well above $500,000 at the next halving in 2028,” said Peterson. “This implies an annualized return of approximately 70%.”
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Peterson’s prediction is particularly notable given Bitcoin’s current price of around $65,700. If his prediction proves accurate, it would represent a massive increase of more than 670% from current levels.
Furthermore, the researcher suggests that Bitcoin should rise “sustainably above $1 million” around 450 days after the next halving event in 2028, which fits with the observed pattern of previous halving cycles, where Bitcoin has tended to experience significant price appreciation in the years since . any reduction in new supply.
Featured image of DALL-E, chart from TradingView.com
