It’s ‘To Be or Not to Be’ Week for Bitcoin! Critical Warning Came from 2 Analysts!
While Bitcoin (BTC) has taken a big hit due to macroeconomic conditions and the FTX crisis, the current data from the United States are of great importance.
The Fed is the Biggest Determinant!
The countdown continues for the December meeting, where the FED interest rate decision, which guides both the US and foreign markets, will be determined. The last FED meeting of the year will take place on December 13-14. At the December meeting, which crypto currency investors are also eagerly awaiting, the FED will announce its economic forecasts for the new year.
After the meetings, FED Chairman Jerome Powell will hold a press conference on December 14 at 21.30 and announce important decisions. It is of great importance in which direction the Fed will set a rate after a series of interest rate increases of 75 basis points throughout the year. However, tomorrow’s rate hike is expected to be lower than previous ones. The reason the market is expecting a lower rate hike is the US Central Bank Governor’s announcement earlier this year that rate hikes would be reduced in December.
According to crypto currency expert Steven Walgenbach, Bitcoin can regain momentum if Powell keeps his word. In the event of an interest rate increase of 50 basis points or less, the global financial and cryptocurrency markets will experience a small to medium-sized relief rally.
On the other hand, if the rate increase goes above 50 basis points, prices in general will fall even more. According to CoinMarketCap, Bitcoin has fallen by 1.39% in the last 24 hours and is currently trading at $16,945. According to the analyst, the price of BTC is in the process of consolidation during this time and has been moving in the horizontal direction for the last 2 weeks. The expert underlined that the news from the Fed will be the biggest determining factor for BTC to record an increase again.
Musk’s Interest and Recession Warning!
The price of Bitcoin had finally risen a few hours before Federal Reserve Chairman Jerome Powell gave his speech at an event organized by the Brooking Institute on November 30. Obviously, the interest rate policy of the US Federal Reserve has a huge impact on the price of Bitcoin. On Friday, Tesla CEO Elon Musk shared his views on the interest rate increase that the Federal Reserve plans to announce this week.
Musk noted that further increases in the interest rate could “greatly” magnify the recession. In October, Musk had claimed that the recession could last for 2 years. After Musk’s latest tweet, Bitcoin traded at $17,171.96, up 0.23%. The Fed appears to be nearing the final stages of its campaign to raise interest rates to combat inflation, which is nearing its highest level in more than four decades. In recent months, the central bank has increased the interest rate several times, leading analyst Tone Vays also claimed that BTC will fall by 13% from its current level to below $ 16,000.
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