Investor Fred Krueger believes the anticipated US Federal Reserve interest rate cuts will be a bullish catalyst for Bitcoin BTC’s price rally. He predicted that Bitcoin could hit $1 million in the next presidential cycle after the Fed rate cuts.
This bold prediction has attracted significant attention among crypto enthusiasts who believe in Bitcoin’s potential. However, BTC’s price has declined in the last 24 hours, trading at $59,199, with a 2.3% decrease.
Fred Kruger Tips Bitcoin to Rally to $1 Million Each
The crypto community remains bullish on Bitcoin, undeterred by the recent retracement. In an August 14 X Post, Fred Krueger described Bitcoin as a giant call against inflation.
Bitcoin is like a giant call option on Inflation.
If the system can hold together for another 4 years with little to no inflation, we'll probably hold at power law trendline +/- one standard deviation. 150K-300K or so.
But if we cut rates, print and then get another big bout of…
— Fred Krueger (@dotkrueger) August 14, 2024
Also, Kruger said Bitcoin could trade in the $150,000-$3000,000 range if the US economy is stable with little to no inflation for the next four years. However, he noted that Bitcoin could witness a much larger boost if another massive wave of inflation occurs.
Kruger pointed out that inflation could increase if the US Federal Reserve starts cutting rates and printing more money. This move could drive Bitcoin’s price to $1 million in the next presidential cycle.
High inflation will make people resort to assets like Bitcoin to hedge against currency devaluation. Such massive adoptions would increase Bitcoin demand, create scarcity, and increase prices.
The CME FedWatch Tool reveals a 63% possibility of the US Fed increasing interest rates in September, supporting the likelihood of Kurger’s prediction materializing.
Also, portfolio manager John Haar supports Kruger’s assertions. Haar noted that Bitcoin rose from a $1 billion market cap in 2013 to a $150 billion market cap in 2019. Based on the official inflation data, this increase came during a period of low inflation.
Investors have begun stashing up Bitcoin in anticipation of a possible future rally. A recent post by crypto analyst Ali Martinez confirms this. Martinez noted that Bitcoin investors have switched from distribution to HODLing in the past three months.
Ali noted that nearly 300,000 BTC has been added to long-term holdings. Also, Ali observed that over 69% of traders on the Binance crypto exchange are opening long positions for Bitcoin.
Over 69% of the top traders in @binance are going long on #Bitcoin! pic.twitter.com/oxATkJ72qk
— Ali (@ali_charts) August 15, 2024
BTC’s Price Decline Continues Despite Cooling Inflation Rate
Bitcoin continues to display price volatility despite analysts’ optimistic views. Also, the decline in the inflation rate could not prevent BTC from dropping below the $60,000 resistance level.
Nevertheless, some investors remain optimistic about Bitcoin’s chances of a recovery despite the current pullback.
Bitcoin dropped below the $55,000 level during last week’s marketwide downturn. However, despite recovering and briefly touching $62,000 on August 8, BTC declined again.
However, BTC has found critical support on the daily chart at $57,800 and has formed a green candle today. This suggests buyers support a rally to move its price to $57,700.
The RSI indicator is 45.46, rising from the neutral zone, indicating more room for growth. A little more charge from buyers and BTC could successfully reclaim $60,000.
Also, the MACD indicator displays a fading sell signal and is rising to cross its signal line, suggesting a growing buying momentum. Therefore, BTC will likely recover above $60,000 soon.
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