• Anthony Scaramucci believes cryptocurrencies will revive once the Federal Reserve stops raising interest rates.
• He thinks this will happen once inflation in the United States dropped back down to 4-5%.
• The financier believes the US central bank will halt the interest rate hikes before reaching the 2% inflation goal, thus stimulating a price expansion for risk assets like cryptocurrencies.
Anthony Scaramucci, the Founder of SkyBridge Capital and former White House official, believes that the revival of cryptocurrencies is imminent. He bases this belief on the fact that the Federal Reserve will cease increasing interest rates once the inflation rate in the United States drops to 4-5%.
The United States Federal Reserve (FED) has been raising interest rates since December 2015. The FED has a goal of reaching a 2% inflation rate, which would be a sign of a healthy economy. However, Scaramucci believes that the FED will declare victory at 4-5% inflation and halt the interest rate hikes.
When the FED stops increasing interest rates, Scaramucci believes that it will signal a „price expansion for risk assets“ such as cryptocurrencies. He believes that this will be the spark that will ignite a bull market for digital assets.
The Federal Reserve has been taking steps to prevent inflation from rising too quickly. These steps include increasing interest rates and using quantitative easing to reduce the money supply. If the Federal Reserve were to stop increasing interest rates, it would be a sign that the economy is healthy and the risk of inflation is low.
The potential bull market in cryptocurrencies would be a welcomed sign in the industry, which has been struggling with bear markets for the past few years. The bear market can be attributed to a combination of government regulations, increased competition, and a lack of institutional investment.
If the Federal Reserve does indeed stop increasing interest rates, it could signal a much-needed boost to the crypto market. It would provide investors with more confidence in the digital asset space and potentially attract more institutional investors.
While it is impossible to predict how the market will react to the Federal Reserve’s decision, it is clear that cryptocurrencies could benefit greatly from a bull market. This could lead to increased adoption and use of digital assets, which would be a positive development for the industry.