During the Corona period, bitcoin had reached beyond 65 thousand dollars, which is a record high so far. A more than 130 percent jump in bitcoin is necessary to reach $1 million from current levels.
If the Federal Reserve raises the interest rate, then investment in crypto will decrease.
Bitcoin outlook 2022: The US Federal Reserve is moving forward on a bond tapering program to ease access liquidity this year. Under the tapering program, it will gradually buy fewer bonds and it is possible to increase the interest rate in the coming days. The impact of this decision of the Federal Reserve on the cryptocurrency market is clearly visible.
At 12.50 pm, bitcoin was trading near $ 41,400 with a fall of 4.11 percent. The market cap of bitcoin has fallen by more than $80 billion so far in the month of January. In such a situation, clouds have started hovering over the possibility of bitcoin reaching 1 lakh dollars. Crypto market experts say that it will definitely reach its goal, although it will be late.
Bitcoin had reached 65 thousand dollars
During the Corona period, bitcoin had reached beyond 65 thousand dollars, which is a record high so far. A more than 130 percent jump in bitcoin is necessary to reach $1 million from current levels. According to a Bloomberg report, if we look at history, bitcoin has given returns in triple digits many times on an annual basis. However, triple digit growth is very difficult in the current situation. Federal’s decision will have a direct impact on its price.
Notes were printed on a large scale
Miller Tabak’s Chief Market Strategist Matt Malley said that due to Corona, the US Federal as well as Central Banks around the world printed notes on a large scale. This was the main reason for the rise in cryptocurrencies. Now that the Federal Reserve is working towards bond tapering, its impact on the price is certain.
Problems will increase if interest rates increase
When the Federal Reserve raises the interest rate, it will be more challenging for investors to take the risk of investing in the cryptocurrency market with the money raised. These investors have earned a lot in the last two years. In such a situation, they will be attracted towards safer investment avenues by selling their cryptocurrency investments.
Bitcoin can reach 1 lakh dollars
Goldman Sachs analyst Zach Pandl said last week that bitcoin could easily cross the $1 million mark if the cryptocurrency continued to dominate the gold market in a similar fashion. Financial experts are advising that if you have included cryptocurrencies in your portfolio, then check the portfolio once again.