Billionaire Palihapitiya expects Bitcoin price explosion after capitulation of the Federal Reserve

Optimism at Palihapitiya

In the podcast, Palihapitiya refers to the changed mood at the Federal Reserve. “In December, Powell was still extremely hawkish, saying rates would finish higher than the market expects and stay there longer than anyone hopes. He was very clear and the markets reacted to that,” said Palihapitiya, referring to the declines of the last months of 2022.

“Now we are 35 or 40 days in and Powell says we have two more rate hikes of 25 basis points ahead of us and is trying to force a soft landing. […] The reality is that he capitulated at the last press conference. The market essentially reacted to that by showing increases that we’re at the end of the cycle,” the billionaire continues in the podcast.

The bottom is behind us

If it is up to Palihapitiya, we saw the bottom for Bitcoin in November with the price of $ 15,500. “We’ve talked about this before, but the market often knows to find a bottom six to nine months before it’s clear that we’re there. In the short term, we are loose in that regard,” said a clear Palihapitiya.

According to the investors, it is quite possible that the markets will now show what we experienced in late 2018 to early 2019 in terms of price action. This was a period when Bitcoin and the crypto market in general was going through a strong period.

“Towards the end of 2018, in the months of October, November, December, markets fell and that was part of Jerome Powell’s rate hike threat. […] Soon after, we got the news that China might be entering a period of malaise and Powell capitulated. […] I think we’re getting a replay of that, at least in part. At least for the next 30 days,” said Palihapitiya.

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