Analyst allows BTC to rise to $40,000
The price of the main crypto coin crossed the level of $29,000 after it became known that the Fed had raised its key rate. The bitcoin exchange rate increased by 2.4% per day, from $28,400 to $29,200. However, then BTC fell to $29,830.
The US Federal Reserve raised the rate by 25 bp. — from 4.75–5 to 5–5.25% per annum. This coincided with the expectations of analysts and market players.
“Economic activity grew at a modest pace in the first quarter. In recent months, job growth has been robust and the unemployment rate has remained low. Inflation remains high,” the press release says.
The cost of Ethereum and other large coins also followed the movement of the market leader — the ETH rate rose by 2% in a day, to $1,900. The market share of the leading altcoin reached 18.3%. The price of Ripple increased by 0.7% to $0.46. The Cardano rate showed an increase of 2%, to $0.39, Polygon — by 2.5%, to $0.99.
The capitalization of the cryptocurrency market in 24 hours increased by 2%, to $1.25 trillion. According to CoinGecko, the daily trading volume exceeded $87 billion.
Jeff Kendrick, head of foreign exchange research at Standard Chartered, believes that the price of bitcoin could rise by another $20,000. This will happen if the US authorities do not fulfill their obligations on the public debt.
Kendrick noted that if the US announces its inability to repay its own debt obligations, the price of BTC could rise by 70% and overcome the $40,000 level. At the same time, the expert considers the probability of default unlikely, but this can provoke serious consequences.
The analyst is confident that investors who consider the first crypto coin to be a “safe haven” will start investing in bitcoin when the market falls. If the US government defaults, BTC will not rise immediately.
According to Kendrick, before the price spike, the main cryptocurrency could fall by about $5,000 and then rise by $25,000.
“The most optimal trading deals in this case would be long positions in bitcoin and short positions in ether. Such a kind of mix,”concluded the analyst.
