News View Non-AMP

Bloodbath Anticipated for the Crypto Markets ahead of FED Rate Hikes

Written by: Elena R

August 19, 2022

The global crypto market cap seems to have again lost its bullish stance, and the top assets- Bitcoin and Ethereum- have begun to shed all their gains. In just one hour, Bitcoin and Ethereum have dropped by 4%.

Bitcoin has lost 7% over 24hrs, while Ethereum has dropped by around 6%. At the time of reporting, Bitcoin is trading at $21,761 while Ethereum is at $1,740.

Last week had been great for the crypto market after the release of the Consumer Price Index. The CPI for the month of July increased to 8.5%, indicating a decrease in inflation.

However, this has not stopped the federal reserve from assuming a hawkish stance and increasing the interest rates. The next FOMC meeting is scheduled for September, and it is anticipated that the FED will proceed with the rate hikes. 

According to James Bullard, St. Luis’s FED President, the chances of the FED increasing the interest rates by another 0.75% are high, which will work to down the inflation pressure.

It’s just not Mr. Bullard, even Neel Kashkari CEO and President of Minneapolis Federal Reserve believes that the increase in interest rates is important to curb inflation.

Crypto Markets To Suffer

The CPI is an excellent predictor of economic inflation. Higher inflation is frequently accompanied by the Federal Reserve enforcing its monetary policy in order to control inflation.

Back in June when there was an interest rate hike, the market reacted negatively was the first-born currency saw its worst financial quarter.

Till now, it was anticipated that inflation has started to cool down and there won’t be any further rate hikes. Additionally, the US GDP indicated a negative growth for two quarters. It can only be presumed that unexpected rate hikes in September would negatively impact the crypto space even further. 

Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

Recent Posts

Bitcoin (BTC)Price Will Not Surge Above $25k Anytime Soon, Predict Glassnode Co-Founders

While the Federal Reserve disclosed another possible interest rate hike, one of the well-known analytic…

September 26, 2022

Invest And Earn Daily With: Oryen (ORY), Pancakeswap (CAKE) And Spiritswap (SPIRIT)

The wealthy understand the power of passive income. It frees up their time, gives them…

September 26, 2022

Terra Classic (LUNC) Price Drops As Interpol Issues Red Notice Against Do Kwon

It appears that the Terraform Labs founder, Do Kwon’s investigation regarding Terra's (LUNA) collapse is…

September 26, 2022

Tron (TRX) Price Getting Ready For Massive BreakOut! Right Time To stack?

Since the middle of August, when the bears consolidated their power, TRX holders have experienced…

September 26, 2022

Will the Uncertainty Around Bitcoin Whales Compell the BTC Price to Drop Below $15000?

Bitcoin price continues to chop around $19,000 as the assert failed to attract liquidity from…

September 26, 2022

Can Moshnake Achieve 10x the Success of Fantom and Algorand?

One of the primary reasons so many individuals invest in cryptocurrencies is the possibility of…

September 26, 2022