Bitcoin, Ethereum, and other top ten cryptocurrencies, including BNB, XRP, Cardano, dogecoin, Tron, Solana, and Polygon’s matic, have been subject to significant price fluctuations amid rumors of a clandestine U.S. “alliance to undermine crypto.”
The bitcoin price has surged by over 50% this year, prompting a wave of optimistic price forecasts. However, its rally has suddenly stalled, leading to a stern warning from Coinbase.
As the U.S. Federal Reserve hints at further interest rate hikes and a $1.1 trillion shock, speculations are mounting that an economic stimulus package from China could have a broad impact, inflating not only traditional markets but also bitcoin, Ethereum, BNB, XRP, Cardano, dogecoin, Tron, Solana, and Polygon’s matic.
China, led by President Xi Jinping, is anticipated to introduce a trillion-dollar economic package, as stated by Chamath Palihapitiya, a former Forbes billionaire who withdrew from the ranking in 2022 following a crypto and stock market crash. Palihapitiya made this remark during the All-In Podcast, alongside fellow investors Jason Calacanis and David Friedberg.
Palihapitiya stated, “China has announced that they’re going to start to inject trillions of dollars. If China engages in massive quantitative easing, it will cause inflation across the board, given its crucial role in the global economy.”
This week, China’s State Council revealed that it is contemplating an economic package aimed at supporting its dwindling post-pandemic recovery by expanding “effective demand,” as reported by the state news agency Xinhua.
Palihapitiya added, “With China printing trillions of dollars, a hard landing is not possible.” He gained recognition in recent years through his utilization of special purpose acquisition companies (SPACs), an investment vehicle that allows private firms to go public with less regulatory scrutiny.
Bitcoin, along with Ethereum, BNB, XRP, Cardano, dogecoin, Tron, Solana, and Polygon’s matic, experienced significant surges in recent years as the Federal Reserve and other central banks implemented stimulus measures during the pandemic.
The bitcoin price plummeted in 2022 when the Fed began tightening its monetary policy to counter rampant inflation, erasing $2 trillion in crypto market value.
This week, the Fed temporarily halted its ten consecutive interest rate hikes, although Fed Chair Jerome Powell indicated that further rate hikes are likely in the future.
Powell stated during a press conference on Wednesday, “We have raised our policy interest rate by five percentage points and have continued to reduce our security holdings at a rapid pace. We have covered substantial ground, and the full effects of our tightening have yet to be felt.”
Written by Agbo Obinnaya.
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