Financial expert Levi Rietveld made a bold prediction about XRP's growth in the next ten days amid expected interest rate cuts in the US.
Expectations for Interest Rate Cuts
In his recent video, Rietveld discussed forecasts by leading financial institutions regarding cuts in Federal Reserve interest rates by the end of the year. He noted that Bank of America expects two cuts, while JPMorgan Chase suggests two to three. These forecasts indicate that most major banks expect a monetary easing.
Correlation Between M2 Growth and Asset Prices
Rietveld further highlighted the historical relationship between rate cuts, M2 money supply expansion, and asset valuations. He stated that there is a correlation of approximately 95% between increases in M2 and the performance of both digital assets and stocks. This suggests that the upcoming monetary environment could be favorable for assets like XRP.
Market Reactions to Monetary Policy
Rietveld's forecast emphasizes a broader narrative within the digital asset space, suggesting that central bank monetary policy decisions significantly impact market performance. Rate cuts typically reduce borrowing costs, increase liquidity, and incentivize investment in both equities and cryptocurrencies.
Rietveld's analysis establishes a clear link between Federal Reserve policy and potential XRP price movements. Despite uncertainties, experts associate the anticipated growth of XRP with expectations of upcoming interest rate cuts.
