Trader Peter Brandt has given a preview of what to expect from the world’s leading crypto-currency, bitcoin, over the next few years. The trader spoke on CoinDesk’s “First Mover” show on Monday about the current state of the crypto, and how its price is expected to evolve in the coming months, among many other topics.
First of all, Peter Brandt admitted that BTC is currently in a downturn that could potentially last for another year and a half. However, he insisted that it will rise from the ashes and reach historic highs afterwards. The founder and CEO of trading firm Factor LLC said he expects the price of BTC to hover between $17,000 and $23,000 over the next few months, if not early next year.
However, he is not very enthusiastic about the prospects for BTC for another 32 months or so. According to Brandt, somewhere along the line, BTC is expected to bottom out at $13,000. And only then will it reach new all-time highs.
Peter Brandt speaks out on the Fed’s upcoming interest rate decisions
There is no doubt that the price of bitcoin has been severely affected by the Federal Reserve’s hawkish approach to inflation. For most of this year, the Fed has continued to raise interest rates to mitigate the effects of this year’s high inflation.
However, all eyes are now on the next Fed meeting in November, with traders and market investors anticipating the usual 75 basis point increase in interest rates. Interestingly, this will be the fourth consecutive 75 basis point increase.
Also, contrary to the popular belief that there will be lower rate hikes starting in December, Peter Brandt has a different view. He thinks the Fed will keep its 75 basis point hike going beyond November 2 and well before the December 14 decision. He stated:
“The Fed needs to regain its credibility. And to do that, I think the Fed really needs to get inflation rates back to at least 4 percent.”
For Brandt, inflation is a killer, and the only way the Fed knows how to bring it down is by doing just that. In September, the U.S. annual inflation rate was 8.3 percent.
Data from CoinMarketCap shows the price of bitcoin (BTC) hovering around $19,200 at the time of publication. The asset has not been able to break the $20,000 mark for over two weeks now.