Bitcoin will surpass $50,000 this year as the Federal Reserve changes course and lowers interest rates, but it will fall short of setting a new record high. Ran Neuner, the creator and host of Crypto Banter, claims that.
Neuner told Michelle Makori, Lead Anchor and Editor-in-Chief of Kitco News, “I absolutely anticipate Bitcoin rising above $50,000 between now and the end of the year.”
With more than 20 years of financial industry experience, Neuner, who is also the Co-Founder and CEO of OnChain Capital, asserted that “we’re headed into a [Fed] relaxing cycle.”
As much as [Fed Chair] Jerome Powell maintained a very strong manner in his most recent conference, Neuner noted that the market did not believe what he stated. Three rate cuts are anticipated by the market this year.
The Fed raised its benchmark interest rate by 25 basis points on March 22. Neuner’s forecast comes during this round of Fed tightening. In an effort to counteract excessive inflation, the Federal Reserve has increased interest rates by 475 basis points during the past year.
Binance’s problems persist
The Commodities Futures Trading Commission (CFTC) has filed litigation against Binance, the largest cryptocurrency exchange in the world, alleging that the business deliberately violated federal law and ran an unauthorized derivatives exchange. Further being sued are Binance’s CEO, Changpeng Zhao (CZ), and its top compliance officer.
According to Neuner, Binance would probably have to pay a fine as a result of civil procedures, but there may also be “criminal” accusations later on.
Several of the allegations in these records, he said, “seem to me to be of a criminal nature.” “If we do receive a criminal suit, then I think the game changes a little bit… that may drive down the price of cryptocurrency and cause ripple effects across the ecosystem.”
Neuner asserted that although the location of Binance’s activities is unclear, it is “squeaky clean” in terms of legal compliance.
“You don’t want to mess with regulators in the United States,” he added. “You can meddle with regulators in Seychelles and Mauritius and those kinds of jurisdictions.” “I think Binance US was actually managed properly,”
Bitcoin increases in value
Notwithstanding the issues with Binance, the market cap of all cryptocurrencies has grown by 49% since January, and Bitcoin is up 72% year to date.
Neuner asserted that additional liquidity had really sparked the boom, despite the fact that central banks throughout the world had tightened monetary policy.
He said, “As a result of the banking crisis, there is more liquidity in the [United] States. Because China is starting to revive its economy, there is greater liquidity there. Moreover, the Bank of Japan is attempting to defend the yen, which adds to the market’s liquidity.
According to Neuner, the reason Bitcoin in particular had increased in value was because it had become more of a safe haven in times of economic and geopolitical unrest. This made it comparable to gold, which is typically thought of as a hedge against market uncertainty.
According to Neuner, “If you look at [Bitcoin] right now, it’s actually starting to have a higher correlation towards gold.” “People are beginning to understand that it might actually be better than gold,”