The first week of October saw bitcoin moving much higher than where it had been. Previously, the asset was struggling to maintain a position in the $19K range, though things turned around somewhat during the early portions of the tenth month of the year to see BTC shoot up into the low $20K range. It’s not much, but it’s something, and analysts and traders everywhere chose to celebrate the hike rather than focus on how small it was.
Bitcoin Could Be in for a Series of Jumps
The bitcoin rise occurred after the Federal Reserve hinted that 2023 wasn’t going to be a great year for the U.S. dollar. In fact, it is believed that the dollar could come crashing down like it never has before.
Among those who foresee the crash of USD in the coming months is Robert Kiyosaki, the author of “Rich Dad, Poor Dad.” He explained in a recent interview:
I believe [the] U.S. dollar will crash by January 2023 after [the] Fed pivots… [If the] Fed continues raising interest rates, the U.S. dollar will get stronger, causing gold, silver, and bitcoin prices to go lower… When the Fed pivots and drops interest rates… you will smile while others cry.
While the fall of USD might sound scary, many bitcoin holders are hoping for this to occur given that when the dollar falls, bitcoin begins to spike as we saw during the days of the coronavirus in 2020. During that time, inflation was beginning, and the U.S. dollar wasn’t used to the harsh economic conditions it began to witness. It started sinking to perdition, which gave BTC the opportunity to rise to nearly $30K by the end of the year.
Kiyosaki’s sentiment was echoed by Marcus Sotiriou, an analyst at digital asset broker Global Block. He commented that there could be less pressure to fight inflation next year, which could pave the way for lesser rates and for bitcoin to recuperate. He said:
These indicators are pointing to less inflation pressure, hence resulting in positive sentiment in global markets yesterday including bitcoin.
Will Next Year Be a Time of Crashing for USD?
Daniel Kostecki – senior market analyst at investment firm Conotoxia – also threw his two cents into the mix, commenting:
Interest rate hikes and the amount of available dollars in the market could be crucial to the future of BTC, ETH, and other cryptocurrencies. At present, the market is trying to catch its breath just as expectations for the U.S. interest rate hikes may be catching their peak. It is estimated that in a quarter’s time, the U.S. dollar could be at an interest rate of 4.7 percent. If that were the peak, then perhaps the spring of 2023 could bring a bigger rebound in the cryptocurrency market as well, since expectations for interest rate cuts in the U.S. could begin to rise with falling inflation.