Coin Bureau on the crypto market: “This winter is going to suck”

Recently, the host of popular crypto market commentary show Coin Bureau shared his thoughts on the crypto market in general, and Bitcoin in particular.

On September 18, Cointelegraph published a reportwho stated that “Bitcoin options expiring at the end of 2022 show that most traders are betting on the price of BTC falling to the $10,000-12,000 area.”

On September 21, at the press conference following the conclusion of the two-day FOMC meeting, the Fed announced it was raising the federal funds rate by 0.75%, and Fed Chairman Jerome Powell had this to say at the press conference:

My colleagues and I are firmly committed to bringing inflation back to our 2% target…At today’s meeting, the Committee raised the target range for the federal funds rate by 3/4 percentage point, bringing the target range at 3 to 3-1/4%… As shown by the SEP, the median projection of the appropriate level for the fed funds rate is 4.4% at the end of this year, or 1 percentage point higher than expected in June. The median projection rises to 4.6% at the end of next year and declines to 2.9% by the end of 2025, still above the median estimate of its longer-term value.

The pseudonymous Coin Bureau host said in a YouTube video posted on September 19 that this year’s interest rate hikes by the Fed “are the main reason why the crypto market has crashed 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, making our current struggles around $18,000 almost joyous in comparison… Consider the fact that many Institutions short positions have been opened for BTC according to CFTC data, while for those who prefer to rely on technical analysis, there isn’t much comfort either, I’m afraid.

In short, whether you’re in stocks, crypto, or just about anything else, this winter is going to suck: skyrocketing interest rates, stubbornly high inflation, an ongoing war in Ukraine, new global unrest, energy bills so high we’re gonna have to do the badger dance to stay warm, and all the other shitty things going on right now. So make sure you have a nice big duvet and be prepared to spend a lot of time under it.

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