Bitcoin (BTC) Price To Drop 35% – Analyst Maps Bottom Levels
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The post Bitcoin (BTC) Price Falls 35% – Analyst Maps Bottom Levels appeared first on Coinpedia Fintech News
Bitcoin is currently priced at $18,790.04, down -0.50% in the last 24 hours. Bitcoin’s most recent price change has resulted in a market capitalization of the token at $359,961,066,170.02. Bitcoin has lost 59.60 percent of its value this year.
Catastrophic interest rate hikes
In their economic forecasts, Federal Reserve board members and presidents have confirmed that they are strongly committed to raising interest rates.
Interest rate hikes are bad for cryptocurrencies, as has been proven several times over the past few months, and many are predicting continued volatility in the short term. Coin Bureau host Gay Turner, who has 80,300 subscribers on YouTube, has also warned the public that the FED fission event will have a negative impact on cryptocurrencies.
Thus, Bitcoin (BTC) may drop more than 35% from its current value.
“When interest rates rise, investors are less likely to invest their money in riskier assets such as stocks and cryptocurrencies.”
BTC Price $12,000?
Due to the continued selling trend in the market, the analyst predicts that BTC may fall as low as $12,000 in the coming months. If that happens, the current $18,000 market upheaval would seem like a picnic.
- The Coin Bureau host claims that the Federal Reserve’s predicted 0.75 percent interest rate hike can already be factored into the market, reducing the likelihood of Bitcoin falling more than 35 percent.
- He also noted that FedWatch, a tool used to gauge the Federal Reserve’s interest rate changes, could increase interest rates by a larger percentage.
- Now that the market has likely priced in this 75 basis point rate hike, a collapse to $12,000 is less likely, at least for the next few weeks.
- The FedWatch tool predicts a 20 percent chance of a full 1 percent rate hike in the near future. This would be the largest tax increase in 40 years.
- According to the host of Coin Bureau, Bitcoin is threatened by a number of factors, including a bearish technical outlook and an increase in short positions, as well as interest rate hikes.
- He further added that CFTC statistics show many institutional short positions in BTC.
- The Fed justifies its absurd rate hike by stating that inflation is high and it is committed to bringing it down to 2%.
- The Federal Funds rate is forecast to rise to 4.4% by the end of the year and 4.6% by 2023, marking a strong rate hike this year.
- The FOMC expects GDP to grow by 0.5 to 1.5 percent in 2023 and 1.4 to 2 percent in 2024.
In short, whether you’re investing in stocks, cryptocurrency, or just about anything else, it’s best to prepare for a brutal winter.