Bitcoin and Ethereum see red as the Fed pulls out its claws against inflation
Bad times for crypto-assets – When we didn’t even have time to celebrate a smooth occurrence of The Mergethe courses of Bitcoin (BTC) andEthereum (ETH) plunge to multi-week lows. It must be said that the aggressiveness of the Federal Reserve American (the Fed) worries the markets, and not only that of the cryptocurrencies. Will the US central bank continue to drastically raise interest rates ?
Inflation, you lose… interest rate hikes, you lose too!
As saying Nassim Nicholas Talebcentral banks around the world have played too long at keeping us alive an “economic Disneyland”with a lot of money printing, especially since the 2008 crisis.
Results : galloping inflation, on the verge of spiraling out of control and going into hyperinflation. Faced with this, the Federal Reserve of the United States was forced to pick up bluntly its key rates.
And many expect it to continue unabated this Wednesday, September 21, 2022, as the reports especially Forbes. The Fed is expected to raise its interest rate again 0.75 points basic. Its interest rates would then go from 1.75 to 2.5%.
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Enough to scare away the actors of qualified assets such as “risky”. Like corporate stocks, but especially cryptos… So, the ether price fell from 1,600 unless $1,300 since the arrival of The Merge on September 15. Same observation with Bitcoinwhich after hovering above $20,000 finds itself at a multi-week low, towards the $18,500.
All the suspense that awaits us, between now and this Wednesday, will be above all whether the Fed is going to announce a lull next in its rate statements. Otherwise, the crypto market risks continuing its fallwith the flight of capital from risky assets to safe havens (dollar, gold, bonds).
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