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The bitcoin price has doubled so far this year, with an ethereum, XRP and broader crypto market rally gaining pace after reports suggested the SEC could be poised to make a game-changing decision.
Now, the veteran founder of bitcoin fund manager Pantera Capital, Dan Morehead, has said bitcoin, ethereum, XRP and crypto more broadly are ready to rally—pointing to blockchain assets “massively decoupling” following the Federal Reserve’s $15 trillion “manipulation” of the bond market.
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Federal Reserve chair Jerome Powell has been wrestling with soaring inflation after the Fed’s … [+]
“In the 247-year history of the country, the Fed only began manipulating bonds in the past 15 years,” Morehead, who launched the first U.S. cryptocurrency fund 10 years ago that’s recorded a face-melting 42,000% return since then and has a strong bitcoin price bull run prediction record, wrote in a blog post.
“Bonds peaked at $15 trillion overvalued in January 2022 … Unfortunately, we still have $700 billion to go. Investors should be very careful about investing in interest-rate sensitive asset classes,” Morehead wrote, adding: “Blockchain should be able to trade independently of rising rates.”
Last year, the Fed began hiking interest rates and dialing back its huge stimulus measures to combat runaway inflation, mostly popping the asset bubble though the bitcoin price remains far higher than its 2020 level.
“Blockchain has massively decoupled,” Morehead wrote, pointing to bitcoin’s correlation with the S&P 500 falling below 0.1—where it was for the first nine years of bitcoin’s existence.
“Having traded 35 years of market cycles, I’ve learned there’s just so long markets can be down, only so much pain investors can take,” Morehead wrote, referencing the 2022 crypto implosions of the terraUSD and crypto exchange FTX. “It’s been enough time. We can rally now.”
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The bitcoin price has rocketed over the last few years, boosting the price of ethereum and XRP, amid … [+]
For now, bitcoin’s XRP-fuelled rally has stalled, with market watchers pointing to the bitcoin price dropping back under $30,000 per bitcoin amid a lull in positive news.
“[Bitcoin] couldn’t hold the level for more than a day as the market continues to tread carefully,” Simon Peters, bitcoin and crypto market analyst at eToro, wrote in an emailed note.
“The cryptoasset has been trading around $30,000 for just under a month as the market looks for more positive news to respond to. The crypto-asset rallied with the rest of the market late last week on the back of a win for XRP in court, which sent many altcoins surging and saw its price catapult up 60%. But for bitcoin, the exuberance was short lived.”