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Billy Markus, one of the two founders of the original meme coin DOGE, has taken to Twitter to notice a growth of the cryptocurrency and stock markets, urging the community to suggest their reasons for that.
He got a response from economist and trader Alex Kruger, who named a likely reason for this reverse.
Kruger has shared what he believes to be the cause of the current bullish reverse in the crypto and stock prices – the recent “subtle, yet impressive” change of the Fed’s policy from hawkish to dovish.
When Markus asked him to elaborate, Kruger tagged his earlier tweets about that.
On July 17, Kruger tweeted about it, stating that the upcoming week would be good for risk assets, which include Bitcoin and other cryptocurrencies.
Back on that day, chairman of the US Fed Reserve Jerome Powell announced the new goal of the Fed to return to the 2 percent inflation level, reducing it from the present record high of 40 years. This came after the US central bank first raised the key interest rate by 25 basis points March, 50 basis points in May and then recently by 75 points in June in an attempt to harness the rapidly rising inflation.
Clear reason: Fed pivot
Over the past two days, the two largest cryptocurrencies, Bitcoin and Ethereum, along with the majority of other coins on the crypto market.
The flagship crypto BTC has surged, adding 7.63 percent and is now trading at $21,398. The second largest crypto has gone up nearly 18 percent, rising from $1,048 to the $1,1233 level. As of this writing, however, Ethereum is changing hands at $1,226.
While prior to this rise many were talking about a new crypto winter that might last about 3-4 years, regular crypto critics have been predicting Bitcoin’s further collapse to the $10,000 level and lower, among them is goldbug Peter Schiff, founder of SchiffGold wealth management fund.
Another famous Bitcoin opponent, expert trader and philosopher, author of “Black Swan”, “Antifragile” and other books Nassim Taleb, according to his recent tweet, believe that the term “crypto winter” cannot be applied to the near future of the digital assets market as it assumes a temporary seasonal state.
What he suggests this should be replaced with in a “crypto ice-age” – this is his long-term prediction for how deep crypto prices might fall.
Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets.
His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.
Currently Yuri is a news writer at U.Today and can be contacted at firstname.lastname@example.org.
Disclaimer: Any financial and market information given on U.Today is written for informational purpose only. Conduct your own research by contacting financial experts before making any investment decisions.