The host of the well-known cryptocurrency market analysis programme Coin Bureau recently gave his opinions on the cryptocurrency market in general and Bitcoin in particular.
Following the two-day FOMC meeting, the Fed announced on September 21 that the federal funds rate will be increased by 0.75%. Fed Chair Jerome Powell made the following remarks at the press conference:
According to a report released on September 18 by Cointelegraph, “Bitcoin options expiring by the end of 2022 indicate most traders wagering on the BTC price sliding all the way down to the $10,000–12,000 level.”
“My coworkers and I are steadfastly devoted to getting inflation back to our target of 2%… The target range for the federal funds rate was increased by 3/4 percentage point at today’s meeting, bringing it to 3 to 3-1/4 percent. According to the SEP, the median forecast for the appropriate level of the federal funds rate at the end of this year is 4.4 percent, which is 0.1 percentage point higher than what was anticipated in June. The median projection is still higher than the median estimate of its longer-run value, rising to 4.6 percent at the end of next year and falling to 2.9 percent by the end of 2025.
He continued, saying:
The host of the anonymous YouTube channel Coin Bureau claimed that the Fed’s interest rate increases this year “are the main reason why the crypto market has been plummeting in recent months” in a video posted on September 19.
Now that interest rates are rising, investors will find riskier assets like equities and particularly cryptocurrency to be less appealing. Many are already speculating that BTC may drop as low as $12K in the upcoming months due to the likelihood of additional selloffs, which sure as hell makes our current troubles around $18K look practically joyous in comparison.
According to CFTC data, several institutional short positions have been opened for BTC. For those who would rather rely on technical analysis, I’m sorry there’s not much solace there either.
In conclusion, regardless of whether you’re invested in stocks, cryptocurrencies, or really anything else, this winter is going to be miserable due to rising interest rates, persistently high inflation, the ongoing conflict in Ukraine, increased global unrest, energy costs so high we’ll have to perform the badger dance to stay warm, and all the other terrible things that are currently happening. As a result, make sure you have a spacious duvet and prepare to spend a lot of time there.
News Summary:
- “This Winter Is Going To Suck,” says Coin Bureau of the cryptocurrency market
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