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Coin Bureau Host Warns of Turbulent Winter Ahead for Crypto Markets, Says High Rates Could Pummel #Bitcoin

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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 is warning that interest rate hikes will negatively impact crypto assets.

The Coin Bureau host tells his 80,300 YouTube subscribers that Bitcoin (BTC) could drop by over 35% from the current level as interest rates rise.

“Now the higher interest rates climb, the less attractive risky assets like stocks and especially crypto will be to investors.

The likelihood of further sell-offs is why many are now predicting that BTC could fall as low as $12,000 in the coming months which, sure as heck, makes our current struggles around $18,000 look almost joyful by comparison.”

Bitcoin is trading at $19,280 at time of writing.

According to the Coin Bureau host, the anticipated 0.75% rate hike by the Federal Reserve could already be priced in thereby lowering the chances of Bitcoin dropping by over 35%.

The Coin Bureau host, however, says that the rates could be raised by a higher figure based on a tool used to forecast the Federal Reserve’s interest rate decisions – the FedWatch tool.

“Now there is a good chance that the market has already priced this 75 basis points rate hike in which would mean that a drop to $12,000 is less likely, at least in the next few weeks.

However, consider the fact that according to the FedWatch tool, there is currently a 20% chance that we could see a rate hike of a full 1%. Now that would be the biggest single rate hike in 40 years.”

Besides interest rate hikes, the Coin Bureau host says Bitcoin is facing other threats such as a negative technical outlook and growing short positions.

“A lot of institutional short positions have been opened for BTC, according to data from the CFTC [Commodity Futures Trading Commission].

While for those who prefer to trust a technical analysis there, isn’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.”



Source: ethereum.today

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