London Crypto Club Analysts Predict Bitcoin Surge

Fed meeting to boost Bitcoin, say London Crypto Club analysts.

The upcoming meeting of the Fed is expected to act as a catalyst for the growth of the leading cryptocurrency. This was stated by London Crypto Club analysts David Brickell and Chris Mills. 

The experts forecast a “dovish surprise” from the regulator. They anticipate an infusion of liquidity into the banking system through an indirect increase in the money supply and bond purchases. This will lead to a sharp rise in the digital asset market.

Brickell and Mills noted a shift towards a rate-cutting cycle amid the Fed’s balance sheet expansion. According to them, the regulator is effectively starting the printing press to monetize the deficit, creating a powerful structural trend for the coming year.

Market participants assess the probability of a 25 basis point rate cut at 89.4%.

Users of the prediction platform Polymarket are even more optimistic, giving it a 94% chance.

Ed Yardeni, President of Yardeni Research, confirmed that the easing of monetary policy is expected almost unanimously.

Cautious Forecasts

In comments to ForkLog, analysts from the Toobit exchange urged caution, advising against expecting a large-scale money issuance. In their view, the Fed will continue to cut rates but will proceed cautiously with regard to inflation.

“Cryptocurrencies may continue to rise, but instead of a vertical takeoff, we will see movement with sharp jumps. If the regulator’s rhetoric remains cautious, a short-term ‘sell the news’ reaction is likely. However, in the long term, the market will benefit from easing financial conditions and cheap borrowing,” noted Toobit.

Bloomberg Intelligence strategist Mike McGlone believes that the “Santa Claus rally” may not occur. He predicts Bitcoin will trade below $84,000 by the year’s end.

Back in December, an expert known as Daan Crypto stated that the price of the leading cryptocurrency is holding a key technical level, the breach of which threatens a significant drop to $76,000.