‘Worse Than 2008’ – A Huge Fed ‘Sledgehammer’ Is Coming For The Price Of Bitcoin, Ethereum And Crypto

Bitcoin, Ethereum and other major cryptocurrencies have suffered an almighty price crash this year, wiping around $2 trillion from the combined crypto market, with the Biden administration warning traders.

Subscribe Now to Forbes CryptoAsset & Blockchain Advisor and successfully navigate the volatile bitcoin and crypto market

The price of bitcoin, down 70% from its all-time high at the end of last year, has repeatedly failed to hold above $20,000 per bitcoin while the price of Ethereum crashed following a stern warning from U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler.

– Advertising –

Now, the bitcoin, ethereum and crypto market is primed for the Federal Reserve to unleash a “sledgehammer” that could drive prices higher (although some are still hoping for a reversal) in its ongoing war against stubbornly high inflation – with an analyst predicting the fallout could be worse from the Great Financial Crisis of 2008.

Want to stay ahead of the market and understand the latest crypto news? sign up now for free CryptoCodexA daily newsletter for traders, investors and the crypto-curious

“We have to look at the macro big picture and what has pressured cryptos this year and that’s the hammer of the Fed,” said Mike McGlone, senior commodities analyst at Bloomberg Intelligence. Kitko.

The Fed, led by Chairman Jerome Powell, embarked on a program of historic interest rate hikes this year as it grapples with runaway inflation that has hit a 40-year high.

Last week, the August Inflation Report showed prices continuing to climb higher than expected, potentially forcing the Fed into another big rate hike at its meeting this week. The Fed’s Federal Open Market Committee will announce its latest decision on Wednesday, with markets forecasting a 75 basis point hike that would take interest rates above 4%, a level not seen since before 2008.

Bitcoin, Ethereum, other major cryptocurrencies and stock markets have been hit hard by the Fed’s monetary tightening mission this year, designed to suck liquidity out of the system, with high-growth tech stocks and falling leading crypto markets.

“There has been a fresh bout of anxiety in financial markets amid fears that inflation will still prove a formidable opponent to bring down,” senior investment and market analyst Susannah Streeter said by email. Hargreaves Lansdown.

“Crypto assets are always closely linked to the fortunes of the stock markets and given that they are considered very risky assets, there has been a flight from the Wild West crypto as investors look for less turbulent places to place their silver.”

The Fed and other central banks have pumped liquidity into the financial system during the Covid-19 pandemic, inflating prices across the board, and if Fed interest rate hikes trigger a recession and meltdown of the market, McGlone fears that it is no longer in dry powder.

“I think it’s going to be worse than the 2008 correction, worse than the Great Financial Crisis,” McGlone said, adding, “The Fed started easing in 2007, and then they added massive liquidity. They can’t do that anymore.”

Register now for CryptoCodex—A free daily newsletter for the crypto-curious

MORE FORBES‘One Domino Falls’-Crypto Braces for $10 Trillion Earthquake as Price of Bitcoin, Ethereum, BNB, XRP, Solana, Cardano and Dogecoin Swing

However, McGlone went on to predict that bitcoin price could rebound to a new all-time high of $100,000 by 2025 and remains bullish on Ethereum over the long term, highlighting the potential for institutional adoption.

For now, the price of bitcoin has fallen to recent lows of just under $20,000 over the past week, with some fearing another dip is on the way.

“Despite a pause in selling, the technical balance of power is on the bears side, with the potential to renew the June lows and move into the $12,000-14,000 area per bitcoin,” Alex said. Kuptsikevich, senior market analyst at FxPro, says in the email comments.

We wish to give thanks to the writer of this article for this awesome material

‘Worse Than 2008’ – A Huge Fed ‘Sledgehammer’ Is Coming For The Price Of Bitcoin, Ethereum And Crypto

You can find our social media profiles here , as well as other related pages herehttps://metfabtech.com/related-pages/