Deciding the ‘Destiny of This Market’—Crypto Is Now Set for a Fed Earthquake as the Price of Bitcoin, Ethereum, BNB, XRP, Solana, Cardano, and Dogecoin Swing
Bitcoin
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Bitcoin price has plunged below $20,000 per bitcoin, down from nearly $70,000 late last year, while ethereum and other top ten cryptocurrencies BNB
Now, after a stronger-than-expected US jobs report this week that sent the price of bitcoin sharply lower, all eyes have turned to the latest Consumer Price Index (CPI) report, due on Thursday, which some believe will “decide the fate of this market. “
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Bitcoin price has crashed by around 70%, wiping around $2 trillion from the combined crypto … [+]
“CPI next week will decide the fate of this market,” an influential trade analyst posted to Twitter after data showed US employers added 263,000 jobs in September, down from 315,000 in August but higher than the 255,000 expected.
“With this jobs report, it seems clear that we are headed for another significant hike from the Fed, with market prices at 75 [basis point] rise in interest rates at the next meeting,” said Paul Craig, portfolio manager at Quilter Investors Coindesk.
CPI in September is predicted to have slowed somewhat from the previous month, forecast to fall to 8.1% year-on-year. A larger-than-expected decline in price increases could mean that the Fed eases its program of interest rate increases.
The latest US CPI reading of 8.3% showed prices were still climbing despite the Fed embarking on a series of historic rate hikes this year, torpedoing stock markets and crypto prices.
“Concerns are firing in from all fronts after the latest robust snapshot of the US labor market,” Susannah Streeter, senior investment and market analyst at brokerage Hargreaves Lansdown, said by email. “At the same time, investors are concerned that the drop in the hiring pace indicates a slowing economy, but also that better-than-expected data shows that labor markets have not slowed enough to stop the Fed from raising interest rates aggressively.”
The Bitcoin and crypto market, after touching $3 trillion last year, has lost a staggering $2 trillion in less than 12 months in what has been dubbed the latest crypto winter. The crypto market has previously spun on boom cycles with the last crypto winter lasting through 2018 until the end of 2020. This week, a crypto entrepreneur predicted how long this latest crypto winter could last.
“We need to see some consistent economic slowdown numbers before the Fed pivot trade is realistically in play,” William Marsters, senior sales trader at Saxo, said in an emailed statement. “CPI numbers and FOMC minutes are out next week, which will continue to build the picture for the outlook.”
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Bitcoin price has been on a downward trend for almost a year, pulling down the price of … [+]
Expectations had been building this week that the Federal Reserve could be about to pivot in its flight against inflation with one closely watched analyst predicting the price of bitcoin and ethereum could be about to “outperform most major assets.”
However, Minneapolis Fed President Neel Kashkari said this week that the central bank has “more work to do.”
“Until I see some evidence that underlying inflation has reached a solid peak and hopefully is coming down again, I’m not ready to declare a pause,” Kashkari said.
