Nigel Green, CEO of deVere Group, predicts that Bitcoin $88,436 could experience a significant price increase if the Federal Reserve decides to lower interest rates. According to Green, a reduction in rates may drive investors away from the dollar and towards cryptocurrencies. In this context, Bitcoin is expected to perform more robustly against traditional safe havens like gold, with Green forecasting a potential rise to $150,000 by year-end, representing a staggering 79% increase.
Expectation of Rate Cuts and Their Impact on Bitcoin
The likelihood of interest rate cuts by the Federal Reserve is being closely monitored within the cryptocurrency market. Data from FedWatch indicates that 69% of investors anticipate a rate cut by 2025. A decrease in rates could weaken the US dollar, prompting investors to seek alternative assets.
According to Nigel Green, Bitcoin will emerge as the standout investment vehicle in this environment. He notes that the depreciation of the dollar due to rate cuts is likely to push investors towards cryptocurrencies, potentially driving Bitcoin’s price significantly higher.
Bitcoin’s Long-term Role Against Gold
Green acknowledges that gold has traditionally been a safe haven investment during periods of global uncertainty. However, with the acceleration of digitalization, he believes Bitcoin could eventually replace gold in the long term. Although U.S. tariff policies may boost gold demand, the trend may shift towards Bitcoin in the future.
Green asserts that we now live in a digital world, making it inevitable for investors to gravitate towards digital assets. He contends that, regardless of the political climate under the Trump administration, Bitcoin is likely to see a strong resurgence once interest rates begin to decline.
Market analysts warn that investors should approach such forecasts cautiously. The price of Bitcoin is influenced not only by supply and demand dynamics but also by economic data, central bank decisions, and global geopolitical developments. Consequently, long-term planning should be prioritized in investment strategies.