Bitcoin Is Now Geared For Two Major Earthquakes After $1 Trillion Crypto Price Crash Tanked Ethereum, BNB, XRP, Solana, Cardano, and Dogecoin
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Bitcoin price has fallen below $19,000 per bitcoin, exacerbating fears that it could fall below 2022 lows if a so-called black swan scenario in September plays out. Ethereum price has also crashed back after the successful first stage of its long-awaited and much-hyped merger upgrade, pulling down the price of top ten coins BNB
Now, as the Federal Reserve’s hawkish stance boosts the US dollar ahead of what some expect to be a “big break”, traders are braced for the European Central Bank (ECB) to follow the Fed in raising interest rates on Thursday, as well as the latest US inflation data next week.
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Bitcoin price has crashed by over 70% since hitting an all-time high of nearly $70,000 per … [+]
“These macro events, combined with [ethereum’s] merge, could be catalysts for the future,” analysts at Arcane Research wrote in a note seen by Coindeskwarns of increased volatility in the coming days.
It is believed the ECB could vote for a 75 basis point rate hike when its governing council meets on Thursday as it battles to bring down euro zone inflation that hit nearly 10% in August.
“As front-loaded increases may have a greater impact on inflation expectations than a more gradual approach, a move of 75 basis points may make sense,” Berenberg chief economist Holger Schmieding wrote in a research note seen by CNBC.
Meanwhile, US Federal Reserve officials and traders are closely watching next week’s consumer price inflation (CPI) data that will show whether the Fed’s previous interest rate hikes have further slowed price increases. Markets are currently pricing in a 75% chance of a third consecutive Fed rate hike in September.
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Bitcoin prices fell sharply on Tuesday, dragging down the prices of ethereum, BNB, XRP, … [+]
Ahead of the next batch of US inflation data, Federal Reserve Chairman Jerome Powell will speak at the Cato Institute’s 40th annual monetary conference on Thursday. Last month, Powell sent bitcoin, crypto and stocks sharply lower when he warned that the Fed would continue to raise interest rates “until the job [of lowering inflation] is done.”
“The falling bitcoin price is solely dependent on the uncertainty surrounding the expected speech by Federal Reserve Chairman Jerome Powell on September 8 and the broader investor reaction to the upcoming rate hike,” Fuad Fatullaev, CEO of blockchain-based web3 ecosystem WeWay, said in emailed comments , warning that the bitcoin price could fall as low as $15,000.
“The deteriorating macroeconomic environment, despite the optimism about the ethereum merger, seems to be pushing rates lower and lower,” Daniel Kostecki, senior market analyst at forex trading platform Conotoxia, said via email.
