Investor Dan Tapiero believes Bitcoin and other cryptocurrencies are poised for a major comeback, but it hinges on a key factor: Federal Reserve policy.
The Fed’s Role in Crypto’s Future
Tapiero argues that the current economic situation needs a shift in monetary policy to support crypto’s growth. He says that Federal Reserve Chair Jerome Powell is currently being too cautious, holding back on necessary policy changes. Tapiero believes that once the Fed loosens its grip on monetary policy, the crypto market will explode. He explained that fiscal tightening needs to be balanced by a monetary response to prevent a harsh economic downturn. He suggested that ideally, there should be better coordination between fiscal and monetary policy. He believes Powell’s reluctance to act is holding back Bitcoin and the broader crypto market.
Bitcoin’s Price Prediction
Tapiero predicts that if his conditions are met – a shift in the Fed’s monetary policy – Bitcoin could surge to nearly $200,000. He emphasizes that even with the positive developments within the crypto space, such as the growth of DeFi and NFTs, infusion of liquidity from traditional finance is still necessary to trigger this significant price increase. He’s held this $180,000 price target for a while now.
Currently, Bitcoin is trading at around $103,159.