Changpeng Zhao, CEO of crypto exchange Binance, believes Bitcoin might reach its all-time high of near $70,000 between a few months and a couple of years.
Why is the Market Crashing?
During the COVID pandemic, the federal government has printed $6.55 trillion to accommodate the needs of the people and stimulate the economy. Of course, with such drastic money printing, this goes with risk and is the main issue of the FED and any currency inflation.
Inflation has been the highest for the past 40 years and this has led the FED to tighten monetary policy. Meaning, they will stimulate the economy less and raise interest rates.
While interest rates are high, spending goes down and markets will crash.
When will it Recover?
The main problem that the FED is trying to fix is inflation. So, once we see that going down and the FED is able to determine that it has already peaked; That is when the FED will become ‘Dovish’ or hike rates.
When rates are cut, money goes back to the economy, and hence, markets will pump.
If inflation tames down and geopolitical issues are fixed, we could possibly test the ATH or even reach higher prices!