Dr. Mohamed Abdelwahab, an economist and financial consultant, has projected a promising future for cryptocurrencies, particularly Bitcoin, over the next two years, based on current economic developments and the U.S. Federal Reserve’s monetary policy plans.
Dr. Abdelwahab explained that the Federal Reserve’s recent decision to reduce interest rates by 25 basis points to 4.50% was an expected move as it adapts to inflation levels nearing 3%.
He added, “The Federal Reserve is anticipated to target interest rates of 3.5% within the next two years, creating a favorable environment for growth in the cryptocurrency market, with Bitcoin leading the way.”
Bitcoin Price Outlook
Dr. Abdelwahab affirmed that if the Federal Reserve continues lowering interest rates without government intervention to curb the growth of cryptocurrency investments, Bitcoin could reach unprecedented levels of $150,000 within the next two years. He noted that lower borrowing costs typically increase market liquidity, boosting demand for digital assets as a hedge against inflation and a means of diversifying investments.
Other Influencing Factors
Abdelwahab highlighted the significant role global political statements play in shaping cryptocurrency market trends. Recent remarks by U.S. President-elect Donald Trump about establishing a U.S. strategic Bitcoin reserve, similar to the strategic oil reserves, pushed Bitcoin to an all-time high of over $106,000 earlier this week.
He added that Trump’s statements, in which he expressed his intention to “leverage cryptocurrencies to achieve great milestones,” reflect a growing global trend toward integrating cryptocurrencies into formal economies, bolstering investor confidence and driving demand.
Potential Challenges
Despite these optimistic projections, Abdelwahab emphasized the risks that must be considered. He pointed out that some governments might intervene to temper the rapid growth of cryptocurrencies to safeguard financial market stability. “Such interventions could lead to sharp price fluctuations in Bitcoin and hinder its ability to reach the anticipated levels,” he said.
Global Market Impacts
Meanwhile, European stock markets displayed mixed performance as investors reacted to inflation data from the United Kingdom and awaited monetary policy decisions from the Federal Reserve and the Bank of England. While the European Stoxx 600 index rose 0.16% to 514.43 points, Germany’s DAX index fell by 0.02%, and the UK’s FTSE 100 index gained 0.05%.
Dr. Abdelwahab concluded his statement by emphasizing that Bitcoin is not merely an investment tool but also signifies a major transformation in the global financial system. With continued positive market movements and increasing government interest, the coming years could witness substantial growth in the integration of cryptocurrencies into the global economy.
