Coin Bureau Host Warns of Turbulent Winter Ahead for Crypto Markets, Says High Prices Could Beat Bitcoin
The host of the Coin Bureau YouTube channel warns that interest rate hikes will negatively impact crypto assets.
The Coin Bureau host tells his 80,300 YouTube subscribers that Bitcoin (BTC) could drop over 35% from today’s levels as interest rates rise.
“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 drop as low as $12,000 in the coming months, which heck makes our current struggles around $18,000 look almost joyous by comparison.”
Bitcoin is trading at $19,280 at the time of writing.
According to the Coin Bureau host, the expected 0.75% interest rate hike by the Federal Reserve may already be priced in, reducing the chances of Bitcoin falling by over 35%.
However, the Coin Bureau host says rates could be raised by a higher number based on a tool used to predict the Federal Reserve’s interest rate decisions – the FedWatch tool.
“Now there’s a good chance the market has already priced in this 75 basis point rate hike, which would mean a drop to $12,000 is less likely, at least over 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 full 1% rate hike. Now it will be the largest single interest rate increase in 40 years.”
In addition to interest rate hikes, the Coin Bureau host says Bitcoin faces other threats such as a negative technical outlook and growing short positions.
“Many institutional short positions have been opened for BTC, according to CFTC data [Commodity Futures Trading Commission].
While for those who prefer to rely on a technical analysis there, there isn’t much comfort there either, I’m afraid.
In short, whether you’re into stocks, crypto, or pretty much anything else, this winter is going to suck.”
I
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