Goldman believes that the FED will soon put an end to the rate hikes by the time September ends leading the value of Bitcoin to rally
Inflation is a major factor that is currently influencing the value of commodities to shoot. The cryptocurrency market has not been left out as they are commodities too that are subject to high volatility as well. Goldman Sachs has come to the conclusion that the Federal Open Market Committee (FOMC) will put an end to interest rate hikes. This could spell good news for Bitcoin and other crypto assets. The equity market could also take a positive significant turn.
According to the analysts, the interest rate reduction will start in June 2024 and this will be the responsibility of the Federal Reserve. After this, they expect to see a drop in the value by a quarter as time goes on. On Sunday, a note written by Jan Hatzius and David Mericle read: “The cuts in our forecast are driven by this desire to normalize the fund’s rate from a restrictive level once inflation is closer to the target.”
In Novemeber, the Federal Reserve is expected to have settled on a rate by which the inflation rate will reduce by.
The Future Of The Bitcoin Price Rally
With the inflation rates set to reduce, the Bitcoin price is expected to increase. Many have noticed that the price of the token has been lingering around the 30000$ support level and so many predictions have stated that it would surpass this level and reach the 31000$ mark.
If bullish conditions are observed, the token could surpass the 30000$ level and later reach 31000$.