Financial expert analyzes: How will the US Federal Reserve react to a possible recession and what chances does Bitcoin have?

Financial expert analyzes: How will the US Federal Reserve react to a possible recession and what chances does Bitcoin have?

According to a report by www.deraktionaer.de,

While market opinions vary widely about the likelihood of a recession in the US, Preston Pysh, co-founder of the Investors Podcast Network, dares to make an ambitious forecast for the coming year. He assumes a flood of money from the Fed and six-digit prices for Bitcoin.

According to reports from reputable banks such as Goldman Sachs and UBS, opinions vary on the likelihood of a recession in the US. While Goldman Sachs is relatively optimistic and estimates the probability of a recession next year at 15 percent, others such as UBS and Morgan Stanley are already expecting a recession and interest rate cuts in the first half of the year. This disagreement in forecasts shows the uncertainty in the market.

According to Pysh, the US Federal Reserve could implement major interest rate cuts and launch massive liquidity programs at the beginning of the year. These measures could be larger than those resulting from the corona pandemic, which he sees as positive for the Bitcoin price. He predicts that Bitcoin could be above $100,000 by the end of 2024.

The prospect of sharp interest rate cuts and liquidity programs from the Fed has the potential to have a significant impact on capital markets. If the US Federal Reserve actually reacts quickly and comprehensively, investors could invest more in alternative investments such as Bitcoin. This could cause the price of Bitcoin to rise significantly and impact the financial market.

The uncertainty about further economic developments in the USA will also have an impact on the financial sector. Investors could increasingly look for safe havens and diversify their investments. The possible interest rate cuts and liquidity programs could also have an impact on the foreign exchange market and other asset classes.

It remains to be seen whether Preston Pysh's predictions will come true and how the US Federal Reserve will actually react to a possible recession. The developments in the coming year will be of great importance for the financial industry and the capital markets as a whole.