- Bitcoin and cryptocurrency prices have shown significant volatility amid preparations for a $6.6 trillion shift by the Federal Reserve.
- Bitcoin’s price dropped from an all-time high of $126,000 but stabilized above $100,000 after a steep decline earlier this month.
- Binance founder projects a $28 trillion valuation for bitcoin, highlighting expectations of future price increases.
- Standard Chartered research head Geoffrey Kendrick indicated that bitcoin might not drop below $100,000 again if it reaches a new peak.
- Market analysts suggest that institutional adoption and cryptocurrency exchange-traded fund (ETF) flows now play a larger role in bitcoin’s price than the traditional halving cycle.
The Federal Reserve’s anticipated $6.6 trillion policy shift is influencing significant swings in bitcoin and cryptocurrency prices. Bitcoin’s value fell from its all-time high of $126,000 but has since stabilized after a rapid drop raised concerns over a potential financial collapse. The price remains well above the $100,000 level.
Binance founder has issued a forecast projecting bitcoin’s market value could reach $28 trillion, which has encouraged bullish traders. These traders suggest a rally could prevent bitcoin’s price from falling below $100,000 again. Notably, Standard Chartered’s head of crypto research, Geoffrey Kendrick, stated in a note that a fresh peak in bitcoin’s price would challenge the traditional price cycles linked to bitcoin halving events.
Kendrick pointed to factors such as flows into bitcoin and crypto ETFs, prospects of a U.S.-China trade agreement, and an expected Federal Reserve interest rate cut this week as positive contributors to bitcoin’s recent price recovery from near $100,000. He added, “I think the halving cycle is dead (ETF flows matter more), but it will take confirmation to convince everyone of this.”
Bitcoin’s halving cycle involves reducing the amount of new bitcoin issued to miners by half approximately every four years, historically coinciding with major price booms and declines. However, analysts increasingly recognize that institutional adoption and related ETF investment flows now have a stronger impact on bitcoin’s price movement.
Market commentary from Bitfinex analysts described the current price movements as a “cycle of rotation, not rejection,” suggesting increased structural integration. They stated that if this trend continues, crypto could serve as a global indicator of how markets adjust to macroeconomic shocks. The commentary also noted varying monetary policy stances from major central banks, with the Federal Reserve managing inflation concerns while the European Central Bank and Bank of England adopt more dovish approaches.
These factors combined may explain the relative calm and maturing liquidity observed in crypto markets, reflecting deeper institutional involvement and alignment amid broader economic uncertainties.
For more detailed insights, see the original Forbes article.
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