XRP Set for Price Boom in Predicted $6 Trillion Fed Inflation Flip: Forbes

Forbes senior contributor Billy Bambrough has boldly asserted that XRP, alongside other crypto assets, is set for a significant price boom in response to a projected $6 trillion inflation reversal by the U.S. Federal Reserve. 

In a recent article, Bambrough highlighted that Bitcoin’s price has surpassed $65,000 for the first time since early May. He noted that the uptick was fueled by speculation that the Federal Reserve will soon signal success in its inflation battle and reduce interest rates.

The view is bolstered by recently released U.S. consumer price index data indicating a slight deceleration in inflation for April, with a 0.3% increase compared to March’s 0.4%, defying the anticipated 0.4%. This subtle shift in inflation trends is thought to have contributed to the burgeoning surge in the cryptocurrency market.

Similarly, Bambrough observed that the development has propelled top assets like XRP and Ethereum upward. Meanwhile, the uptrend in the crypto market picked up further within the past day, with Bitcoin regaining the $71K price level. Similarly, XRP has registered an over 6% growth with Bitcoin’s uptrend.

$6T Fed Inflation Flip to Influence Higher Prices

However, the Forbes contributor has suggested that this rally may be a prelude to what is incoming. To strengthen this view, he referenced a bullish prediction from Tom Lee, the managing partner and head of research at Fundstrat Global Advisors. 

In a CNBC interview, Lee posited that $6 trillion in dormant cash can potentially escalate Bitcoin’s value to $150,000, indicating that the bull market is still in its initial stages.

‘Still Early’—Sudden $6 Trillion Fed Inflation Flip Predicted To Unleash A Bitcoin, Ethereum, XRP And Crypto Price Boom https://t.co/vYpsbgSq6l pic.twitter.com/doEjvOef58

— Forbes (@Forbes) May 15, 2024

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Lee also commented on the Federal Reserve’s stance on inflation, which he perceives as more dovish compared to market expectations. He suggests that this perspective is aiding the market’s recovery. 

Furthermore, he observed that with increasing capital expenditure, positive trends in international securities markets, and substantial cash reserves that have been sidelined for over two years, there is a strong undercurrent of “pent-up demand” that could fuel the market’s upward trajectory.

XRP Potential Value with BTC at $150K

Notably, the current presence of exchange-traded funds investing in Bitcoin supports this view of the price boom in cryptocurrencies. Bitcoin and a few assets attained new all-time highs after the January approvals for crypto ETFs.

The outlook for BTC reaching $150K this year suggests an impending surge of 112%, considering the asset’s current value of $71,100. Factoring a similar percentage growth for XRP puts its price back above the $1 threshold. However, other market pundits suggested loftier highs for XRP with BTC at $150K.