Categories: Bitcoin Business

Crypto Exchange OKEx Pounds the Table on 34% Bitcoin Price Surge

Click here to view original web page at
Crypto exchange OKEx believes the bitcoin price will surge 34% to $14,000 this year, thanks to a little help from the Federal Reserve. | Source: Shutterstock

By CCN Markets: Crypto exchange OKEx isn't concerned that the bitcoin price appears to have hit a wall just above the $10,000 mark.

In fact, the industry giant believes BTC will surge another 34% to $14,000 before the end of the year, thanks to a helping hand from the US Federal Reserve.

#Fed is expected to signal a further rate cut at today's Jackson Hole Symposium. An OKEx #analyst gives a $BTC target by this year's end. More insights:

OKEx Explains $14,000 Bitcoin Price Target

OKEx predicts that the price of bitcoin is on track to move higher in response to global monetary policy, which seems biased toward easing in light of fragile economic growth.

The cryptocurrency exchange said:

“With additional rate cuts on the horizon and global central banks are jumping on the easing bandwagon, the demand for hard assets like gold is expected to surge, and that inflation-hedging drive could push the prices of bitcoin to $14,000 levels by the end of the year.”

OKEx observed that three central banks have slashed interest rates just this month.

The exchange also points out that there’s a virtually-100% chance of the Federal Reserve reducing its benchmark target again in September at the next FOMC policy meeting.

The market has priced in a 100% probability of a Fed rate cut in September. | Source: CME FedWatch Tool

Bitcoin shot up 12% between the June and July FOMC meetings, as anticipation of a rate cut increased.

The Fed then slashed rates by 25 basis points toward the end of July, and OKEx has based its estimate on this relationship - even though the bitcoin price barely budged when the rate cut was formally announced.

The cryptocurrency exchange is assuming that a 25 basis rate point cut could boost the bitcoin price by 12%. That's great for crypto bulls since traders currently expect as many as three more rate reductions in 2019.

“Assume that a 25 bps cut could give about 12% gain to BTCUSD, three more 25bps cuts could send BTCUSD to $14,000 levels by the year-end, breaking the previous high near $13,800.”

Why Should Interest Rate Cuts Bolster Crypto?

Bitcoin bulls believe that monetary easing by central governments could be a tailwind for the cryptocurrency.

That’s because low interest rates disincentivize cash hoarding and could also trigger inflation.

If this thesis holds true, then OKEx’s prediction of the year-end bitcoin price of $14,000 shouldn’t be ruled out as a fantasy.

Click here for a real-time bitcoin price chart.

This article is protected by copyright laws and is owned by CCN Markets.


Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Published by

Recent Posts

Everyone’s Worst Fears About EOS Are Proving True

The Takeaway: EOS is the world’s seventh-largest blockchain by market cap, with a value topping $3 billion since February 2019.… Read More

3 hours ago

Street Artist Makes $12,000 in Bitcoin Donations

A French street artist best known for painting lady liberty leading the yellow vests has stated he has received more… Read More

4 hours ago

Wave Financial Launches World-First Bitcoin Yield Fund: Wave BTC Income & Growth Digital Fund

LOS ANGELES, Sept. 19, 2019 /PRNewswire/ -- Wave Financial LLC (Wave), a leading asset management firm focused on digital assets,… Read More

4 hours ago

Nigerian man returns bitcoins worth $80,000

Keith Mali Chung returned Bitcoins worth $80,000 mistakenly transferred to him. A Nigerian man who found $80,000 dollar's worth of… Read More

4 hours ago

Bitcoin Surrenders Post Fed Rate Cut; Pullback Awaited

Bitcoin slipped below $10,000 on Thursday after the Federal Reserve cut benchmark lending rates by 25 basis points.The BTC/USD instrument… Read More

4 hours ago

Bitcoin Hashrate Hits All-time High as Price Dwindles

The benchmark metric of miners confidence in the Bitcoin network established its all-time high on Thursday.Hashrate, which reflects the processing… Read More

4 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More