U.Today - According to Bloomberg, hedge fund manager and SkyBridge Capital founder, Anthony Scaramucci has made a bold prediction for Bitcoin (BTC), forecasting that the cryptocurrency might reach new all-time highs.
According to Scaramucci, a combination of expected Federal Reserve rate cuts and a clearer regulatory framework in the U.S. might serve as key catalysts for a significant Bitcoin price surge.
Scaramucci believes that the Fed might likely reduce borrowing costs by a half point on Wednesday, as part of at least 150 basis points of reduction over the following 18 months.
This move is "going to be really good for asset prices in the US and globally,” Scaramucci stated, adding that Bitcoin may reach $100,000 by the end of the year.
Bitcoin hit an all-time high of $73,798 in mid-March, boosted by demand for U.S. exchange-traded funds. The surge then slowed as inflows into ETFs declined.
Fed rate decision anticipated
Cryptocurrencies saw mixed price action in early Wednesday trading ahead of the Federal Reserve's interest rate announcement expected later in the day. While a rate cut is almost certainly on the way, traders are divided on how much it will be.Investors are looking for signals about what Fed interest rate policy will look like for the rest of the year and whether further cuts are on the way.
Fed Chairman Jerome Powell is scheduled to hold a post-meeting press conference, which may reveal new insights into the central bank's thinking.
Bitcoin reacts ahead of Fed rate decision
Bitcoin rose significantly in Tuesday's trading session as the Fed meeting began and optimism increased about an anticipated rate cut.The largest cryptocurrency by market capitalization rose to a high of $61,373 in Tuesday's trading session, its highest price in three weeks at $61,330, before losing some of its gains. It just traded slightly below $60,000, but still up 1.18% in the last 24 hours.
According to crypto analyst Ali Martinez, Bitcoin may experience a minor pullback after the TD (TSX:TD) Sequential indicator has produced a sell signal on the BTC one-hour chart.
Meanwhile, on the upside, on-chain resistance levels are relatively evenly spread; according to IntoTheblock, a key level to observe is $64,000, where 1.57 million addresses are now holding at a loss.