The rise of inflation has all the eyes on one FOMC meeting. People who have grown to expect this financial crisis expect the interest rate to be 75 bps. However, the new FOMC meeting has got them worried. Experts say that crypto prices will “Nuke” if a 100 bps rate is announced FOMC meeting.
The Rapid fall of most major-league cryptos
There has been a major downturn for many major-league cryptocurrencies like Bitcoin and Ethereum over the last 48 hours. Bitcoin has received some relief after crossing the $19k resistance, but it is still far off from finding stable ground. Ethereum has fallen below $1.4k – but that drop can be attributed to the Merge Update.
There is a 16% probability of 100 Bps
According to Crypto Chase, one of the leading crypto experts active on Twitter, with over 100k followers on the platform as well as YouTube, was able to predict the Bitcoin and Ethereum’s upswings, selling them at $56k and $4k, respectively.
“Giga Nuke” is the term he has given to what would happen to the crypto prices if the Feds decide to hike the interest rate by 100 Bps. And there is a 16% chance that it might happen.
But what if the hike is 75 bps like people expect? Crypto chase says that it would let the liquidity flow both ways, resulting in a choppy price action that would lead to “Darth Maul Candle” that would stop the long and shorts before Fed chart Powell makes any declaration.
Trading Tank Says that Bitcoin Dip is Eminent If 100 BPS is decided
Trading Tank is another crypto expert who said his two cents about the latest developments in the crypto market. In his post to his 7700 Twitter followers, he wrote that the CPI and PPI data were fresh, and the inflation rate was much higher than expected. That led him to stop his sell-off because of the 75 BPS hike.
He is saying the same things as Crypto Chase, stating that Bitcoin will test new lows if the Fed opts for a 100 bps hike rate.
He added that the economic impact of the high rate takes some time to take effect. However, the customers act as if the reaction is immediate, resulting in massive sell-offs.
But, if the hike rate is 75 Bps, as the crypto crowd already expects, Bitcoin price can rise due to a mid-term rally.
Experts Continuously weigh Their Perspectives on the Current Situation
Experts are watching the current developments closely and eagerly adding their perspectives on the current situation. The hike won’t only impact the crypto market. According to the John Kicklighter of the DailyFX, the ecological developments also look bearish if the 100 bps hike rate comes to pass.
The current period is particularly volatile in the crypto space. Investors must carefully weigh their choices before investing. Furthermore, it is also important that they are always ready for the worst-case scenarios. The Fed rate hike is just one part of the changing phases of the crypto market. The rising calls for regulations and utility-based cryptos can also impact the market.
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