Recently, the host of the popular crypto market commentary show Coin Bureau shared his thoughts on the crypto market in general, and Bitcoin in particular.
On September 18, Cointelegraph published a report, which stated that “Bitcoin options expiring at the end of 2022 show most traders betting on the BTC price dropping all the way down to the $10-000-12,000 area.”
On September 21, at the press conference following the conclusion of the two-day FOMC meeting, the Fed announced that it was raising the federal funds rate by 0.75%, and Fed Chair Jerome Powell had this to say at the press conference:
“My colleagues and I are strongly committed to bringing inflation back down to our 2 percent goal… At today’s meeting the Committee raised the target range for the federal funds rate by 3/4 percentage point, bringing the target range to 3 to 3-1/4 percent… As shown in the SEP, the median projection for the appropriate level of the federal funds rate is 4.4 percent at the end of this year, 1 percentage point higher than projected in June. The median projection rises to 4.6 percent at the end of next year and declines to 2.9 percent by the end of 2025, still above the median estimate of its longer-run value.“
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The pseudonymous host of Coin Bureau said in a YouTube video released on September 19 that this year’ interest rate hikes by the Fed “are the principal reason why the crypto market has been tanking in recent months.”
He went on to say:
“Now, the higher interest rates climb, the less attractive risky assets like stocks and especially crypto will be to investors. The likelihood of further selloffs is why many are now predicting that BTC could fall as low as $12K in the coming months, which sure as heck makes our current struggles around $18K look almost joyful by comparison… Consider the fact that a lot of institutional short positions have been opened for BTC according to data from the CFTC, while for those who prefer to trust a technical analysis, there ain’t much comfort there either, I’m afraid.
“In short then, whether you’re in stocks, crypto, or indeed pretty much anything else, this winter is going to suck: soaring interest rates, stubbornly high inflation, a continuing war in Ukraine, further global unrest, energy bills so high we’ll have to do the badger dance to stay warm, and all the other crappy things going on right now. So make sure you’ve got a nice big duvet and get ready to spend a considerable amount of time under it.“
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Featured Image via Pixabay
