Coin Bureau Host Warns of Turbulent Winter Ahead for Crypto Markets, Says High Rates Could Pummel Bitcoin
The host of the Coin Bureau YouTube channel has warned that rate hikes will negatively impact crypto assets.
coin bureau host Tell His 80,300 YouTube subscribers believe that Bitcoin (BTC) could fall by more than 35% from current levels as interest rates rise.
“The higher interest rates are now, the less attractive stocks, especially risky assets like cryptocurrencies, are for investors.
The possibility of further selling is why many are now predicting that BTC could drop as low as $12,000 in the coming months, which does make our current struggles around $18,000 seem almost pleasant. “
At the time of writing, Bitcoin is trading at $19,280.
According to the Coin Bureau host, the Fed’s expected 0.75% rate hike may have already been priced in, making Bitcoin less likely to fall by more than 35%.
However, the Coin Bureau host said that based on the tool used to predict the Fed’s decision on interest rates – rates could be raised by a much higher number. FedWatch Tools.
“It’s quite possible that the market has now priced in this 75 basis point hike, which means a drop to $12,000 is less likely for at least the next few weeks.
However, considering that according to the FedWatch tool, we currently have a 20% chance of seeing a 1% hike. This will now be the largest single rate hike in 40 years. “
In addition to the rate hike, the Coin Bureau host said that Bitcoin faces other threats, such as a negative technical outlook and growing short positions.
“According to CFTC data, many institutions have opened short positions in BTC [Commodity Futures Trading Commission].
Although for those who prefer to trust the technical analysis out there, I’m afraid it’s not very comfortable either.
In short, whether you’re in stocks, cryptocurrencies, or pretty much anything else, this winter is going to be bad. “
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