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Timothy Peterson named the growth factor for the price of Bitcoin

For the first cryptocurrency to reach $100,000, only one factor is needed, which depends on the US Federal Reserve System (FRS). This was stated by Cane Island Alternative Advisors analyst Timothy Peterson in an interview Cointelegraph.

“The US speculative grade high yield bond rate is an excellent indicator. In fact, it needs to fall below 6% or 7% for Bitcoin to begin a sustained move towards an all-time high,” he explained.

According to the data YChartsat the time of writing the figure is 7.54%.

According to Peterson, if yield rates fall to the designated range, Bitcoin will rise to $100,000 in the fourth quarter of 2024 or in the first quarter of 2025.

Interest rates are seen as an important indicator for crypto traders, as lower interest rates typically lead to lower returns for investors in traditional securities.

The expert claims that in general, markets tend to be “stable and volatile” between September and October. However, this time there may be “uncertainty” due to the US presidential elections, which will be held in early November.

In parallel, trader Scott Melker said that the Fed's interest rate cuts are not always favorable for assets beyond fixed income investments.

“There is an extremely popular theory that the reversal [финансовой политики] The Fed is good for markets. This is obviously not true. After a rate cut, the market almost always experiences a crash/correction,” he added.

Previously, Galaxy Digital CEO Mike Novogratz predicted that Bitcoin would rise to $75,000 by the end of June. According to him, the coin is now in a consolidation phase with the lower limit at $55,000.

Source: Cryptocurrency

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