The crypto space appears to have relaxed a bit as the prices of the popular tokens have been consolidating within a very narrow range. Bitcoin, the star cryptocurrency, appears to be accumulating gains as it prepares to fly past previous highs very soon. Hence, the altcoins may also begin with a fresh bullish wave as the possibility of the global crypto market cap achieving the milestone of $2 trillion appears to be pretty high.
But how will the BTC price reach $100k? And by when?
The US economy has been badly hit by the ripple effects of the fallout from the major banks in the state. Although customers are assured they will get access to their funds, the stability of the banks continues to remain shady. In the meantime, JP Morgan, a leader in investment banking, raises the possibility of the FED releasing an emergency loan.
According to JP Morgan, the Fed’s emergency loan program may inject as much as $2 trillion of funds into the US banking system.
Hold on to your hats. pic.twitter.com/RDi5ToQT94
— tedtalksmacro (@tedtalksmacro) March 16, 2023
As per the reports, the FED may soon inject $2 trillion into the US banking system to stabilize the prevailing crisis. This facility is likely to be used by the largest banks, which may help the centralized banks recover from their losses.
The reserve balances at the FED had depleted, but they spiked since the beginning of 2020 and marked highs during the first half of 2021. This was when the inflation rates began to surge. The rates, which were 1.40% in January 2021, soared to 9.06% in July 2022, which was the highest in the past 42 years!
One needs to take note that this was the time when the crypto markets underwent a massive bull run where Bitcoin prices soared from around $10,000 to as high as $69,000. Now that the FED is preparing to inject $2 trillion into the economy, the dropped inflation rates may rebound and surpass the 2022 highs.
This may be when the US could be hit with hyperinflation, resulting in a bull run in the crypto markets. Many tokens may rise more than 10x to double their ATH as the BTC price is assumed to hit $100K then!
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Sahana Vibhute
A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.
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The world’s reserve currency, the US Dollar, could be on the precipice of releasing a wave of hyperinflation, states a Financial Times report citing experts. This could signal a huge financial shock to the global economy, and people are starting to worry and turn to Bitcoin (BTC) to protect their savings.
Hyperinflation could occur due to a combination of a large stimulus plan, open-ended quantitative easing, and expected growth in the money supply, according to the report. This could lead to a dramatic increase in prices, leading to lower purchasing power for people who hold US Dollar-denominated assets.
In response to the potential hyperinflation, investors have been turning to Bitcoin as a store of value. Bitcoin is seen as a hedge against inflation as its supply is extremely limited and its long-term price is immune from central bank intervention.
Furthermore, the decentralized architecture of the Bitcoin network gives people the ability to move BTC to other wallets, allowing them to access their funds quickly in case of an emergency.
As investors search for safe havens from potential hyperinflation, Bitcoin is becoming an attractive option. This could lead to a surge in its price and would be great news for long-term holders of the digital asset.
If Bitcoin can reach new heights in the market, it could potentially hit prices in the range of $100K. At that price, not only would holders benefit, but the entire ecosystem around Bitcoin would also benefit.
In conclusion, the financial world is currently facing a major threat with the potential for hyperinflation. To avoid the worst effects of this inflationary cycle, many investors are turning to Bitcoin as it provides a reliable store of value that has held its value in times of crisis. If Bitcoin’s price keeps rising, it could potentially reach prices of $100K, making it a very attractive investment for long-term holders.
