Shift

Rally

2024

Trillion

Could the US Federal Reserve’s potential pivot on inflation be the catalyst for a multi-trillion dollar surge in the cryptocurrency market? That’s the bullish prediction from some of Wall Street’s top analysts as they eye a seismic shift in monetary policy. 
According to a <a href="https://www.forbes.com/sites/digital-assets/2024/05/16/still-early-sudden-6-trillion-fed-inflation-flip-predicted-to-unleash-a--bitcoin-ethereum-xrp-and-crypto-price-boom/?sh=2203f6903b2e" target="_blank" rel="noopener nofollow">new report from Forbes</a>, the stage may be set for a remarkable resurgence in the prices of leading digital assets like Bitcoin and XRP. The key driver? An estimated $6 trillion in sidelined capital that could come flooding back into the market as the Fed eases its hawkish stance. 
<h2 id="strong-the-floodgates-could-open-strong">The Floodgates Could Open</h2> 
This isn’t just a typical crypto rally. Tom Lee, managing partner at Fundstrat Global Advisors, believes in the potential for a transformative, once-in-a-generation event. If the Fed signals that it’s successfully reined in inflation, he said people could see trillions of dollars rushing back into the market in a matter of months. 
<blockquote class="twitter-tweet"> 
 ‘Still Early’—Sudden $6 Trillion Fed Inflation Flip Predicted To Unleash A Bitcoin, Ethereum, XRP And Crypto Price Boom <a href="https://t.co/vYpsbgSq6l" rel="nofollow" target="_blank">https://t.co/vYpsbgSq6l</a> <a href="https://t.co/doEjvOef58" rel="nofollow" target="_blank">pic.twitter.com/doEjvOef58</a> 
 — Forbes (@Forbes) <a href="https://twitter.com/Forbes/status/1790811973673730164?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">May 15, 2024</a>
</blockquote> 
Lee’s bullish outlook is centered around the notion that the Fed will soon declare victory in its battle against soaring prices. The recent deceleration in the US consumer price index, with a 0.3% increase in April versus 0.4% in March, suggests the central bank’s aggressive rate hike campaign may be bearing fruit. 
Should that prove to be the case, Lee believes it could ignite a frenzy of investment activity, with <a href="https://www.coingecko.com/en/coins/bitcoin" target="_blank" rel="noopener nofollow">Bitcoin</a> potentially surging to $150,000 – more than double its current price of around $71,000. And if history is any guide, other cryptocurrencies like XRP could follow a similar trajectory. 
<img loading="lazy" decoding="async" class="size-full" src="https://www.tradingview.com/x/5OityDCn/" width="1835" height="883"> 
<h2 id="strong-crypto-etfs-provide-institutional-tailwind-strong">Crypto ETFs Provide Institutional Tailwind</h2> 
Bolstering this bullish case is the recent wave of crypto exchange-traded fund (ETF) approvals, which have opened the door for mainstream investors to gain exposure to digital assets. Since January, a number of high-profile Bitcoin and<a href="https://www.morningstar.com/news/marketwatch/20240521113/ether-may-rally-over-75-if-sec-approves-the-crypto-based-etf-says-alliancebernstein" target="_blank" rel="noopener nofollow"> Ethereum ETFs</a> have launched, providing a crucial on-ramp for institutional capital. XRP Poised For Resurgence? 
All eyes will be on XRP, the third-largest cryptocurrency by market capitalization, which has struggled to regain its former highs after a protracted legal battle with the US Securities and Exchange Commission. 
However, if the broader crypto market does indeed embark on a parabolic rally fueled by that $6 trillion in dormant capital, analysts believe XRP could be one of the biggest beneficiaries. Some are even speculating that the token could soar past the $1 mark – and potentially reach even loftier heights – if Bitcoin achieves Lee’s $150,000 target. 
XRP has been in the doldrums for a while now, but that could all change in a heartbeat if this predicted crypto boom materializes. With the SEC issue seemingly resolved, XRP is poised for a major resurgence, and we could see it reclaim its former glory as one of the market’s top-performing assets. 
Featured image from Getty Images, chart from TradingView

Massive XRP Rally Expected With Federal Reserve’s $6 Trillion Inflation Shift

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