Coin agency on the crypto market: “This winter is going to suck”
Recently, the host of the popular commentary show Coin Bureau shared his thoughts on the crypto market in general, and Bitcoin in particular.
On September 18, Cointelegraph published a report saying that “Bitcoin options expiring at the end of 2022 show most traders betting on the BTC price falling all the way down to the $10,000-12,000 range.”
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 Chairman Jerome Powell said this at the press conference:
“My colleagues and I are strongly committed to bringing inflation back to our 2 percent target… At today’s meeting, the Committee raised the target range for the federal funds rate by 3/4 of a percentage point, bringing the target range to 3 to 3-1/4 percent … As shown in the SEP, the median estimate for the appropriate level of the federal funds rate is 4.4 percent at the end of this year, 1 percentage point higher than the estimate in June. The median estimate rises to 4.6 percent by the end of next year and declines to 2.9 percent by the end of 2025, still above the median estimate for its long-term value.“
The pseudonymous Coin Bureau host said in a YouTube video released on September 19 that this year’s interest rate hikes by the Fed “are the main reason why the crypto market has gone haywire in recent months.”
He went on to say:
“Now, the higher interest rates rise, the less attractive risky assets like stocks and especially crypto will be to investors. The likelihood of further selling is why many are now predicting that BTC could fall as low as $12,000 in the coming months, which certainly makes our current struggle around $18,000 look almost cheering by comparison… Consider the fact that many institutional short positions have been opened for BTC according to data from the CFTC, while for those who prefer to rely on a technical analysis, there is not much comfort there either, I’m afraid.
“In short, whether you’re into stocks, crypto, or indeed pretty much everything else, this winter is going to suck: skyrocketing interest rates, stubbornly high inflation, a continuing war in Ukraine, further global turmoil, energy bills so high we’ll have to dance badger to keep warm, and all the other crappy things going on right now. So make sure you have a nice big duvet and get ready to spend a lot of time under it.“
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