Bitcoin and crypto prices have fallen sharply over the last month, with the bitcoin price losing 25%—even as some predict the U.S. could “embrace cryptocurrencies in 2022.”
The bitcoin price crash, that’s dragged on the price of ethereum and other cryptocurrencies, has seen some $600 billion wiped from the combined crypto market over the last month.
Now, in the face of the Federal Reserve’s increasingly hawkish attitude going into 2022, billionaire investor Mike Novogratz has said he expects the ethereum price to outperform bitcoin as the Fed looks to tackle inflation.
Sign up now for the free CryptoCodex—A daily newsletter for the crypto-curious. Helping you understand the world of bitcoin and crypto, every weekday
Fed chairman Jerome Powell is expected to begin tapering the bank’s huge stimulus program in … [+]
Getty Images
“People see ethereum as a technology bet and bitcoin more as a debasement of fiat currency bet,” Novogratz said, speaking this week on CNBC ahead of the latest U.S. consumer price index data that showed prices rose 6.8% in the year to November, taking annual inflation to a 40-year high.
Soaring inflation has resulted in mounting speculation the Fed will reduce its historic, multi-billion-dollar bond-buying support more quickly than previously expected and queuing up a series of interest rate hikes next year.
“[When the Fed starts to taper] in a lot of ways, that’s why you’re seeing ethereum really outperform bitcoin,” Novogratz said. “If you look at the ethereum price, ethereum still trades bullish [compared to bitcoin].”
The bitcoin price has been left in the dust by ethereum’s huge price rally over the last year. The ethereum price is up around 650%…
![Anticipation for Ethereum [ETH] 2.0 rises as metric reaches all-time high](https://crypto.newswireservice.net/wp-content/uploads/2023/01/ethereum-wale-1000x600-350x250.jpg)
