Fed Is Crashing Bitcoin And Crypto Markets, Says Analyst Nicholas Merten – Here’s Why
A widely followed crypto analyst says the actions of the US Federal Reserve will crash Bitcoin (BTC) and the crypto markets in general.
In a new video update, DataDash host Nicholas Merten tells his 511,000 YouTube subscribers that the Fed could once again wreak havoc on the crypto industry by continuing to raise interest rates as a means of countering inflation.
According to Merten, recent testimony from Fed Chair Jerome Powell is likely to push Bitcoin below the $20,000 level “very soon” as the Fed springs liquidity traps.
“The recent testimony of Chairman Jerome Powell, of the Federal Reserve, before Congress, in which he answered questions from Republicans and Democrats and essentially tried to address why the Fed has taken the stance it has on monetary policy…
The Federal Reserve is probably using this kind of flip-flop narrative mechanism that the Fed is known for [during] the biggest part of the story where it says one thing and does another to its advantage in order to create liquidity traps to absorb liquidity, or more specifically, to have an excuse to inject liquidity into the system and stick to its two percent inflation target .
[The Fed] has been doing this for most of the last decade, the only difference this time is that it uses the euphoria and continued optimism as a way to capture liquidity and absorb liquidity from the real economy into the financial markets.”
Merten also notes that the past few weeks have proven how interconnected crypto is with traditional markets, and that Bitcoin bulls should be happy to grab BTC between $13,000 and $14,000 should it drop that low.
“The last month and a half has been ample proof that crypto isn’t separated from everything yet, and maybe Bitcoin won’t go all the way down to $7,000 or $10,000, some kind of big absurd decline that’s generally in line with the traditional crypto bear markets, maybe it will still only go to $14,000 or $13,000, I’m looking forward to that.”
Bitcoin is trading at $22,133 at the time of writing, down a fraction over the past 24 hours.
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