The FOMC meeting is fast approaching and the entire world is pretty much eager to know the updated inflation rates. The rates in the past 2 months have broken the record of being the highest in the past 40 years, while the previous rise also marked the highest single-spike of all time. Therefore as per the experts, the crypto space is expected to be volatile throughout the week.
The BTC price plunge earlier was ignited by multiple events like LUNA-UST, Celsius, 3AC, etc, & later fuelled by FED rates. Now when the prices are attempting to make a move towards the north, will the new rates slash the prices below $21,000?
Bitcoin price after a tough brawl with the bears had registered a bullish weekly close recently that included immense upward pressure. It should also be noted that the star crypto has made a short-term comeback after the inflation rates were announced before falling prey to the FUD. Therefore, now when the prices have been dropping much before the announcement, the possibility of a sustained upswing emerges.
In a series of Tweets, a popular analyst explains why Bitcoin may struggle to move past $28K as FED is expected to tighten its policy to promote a ‘Sell’ of the volatile assets.
The analyst here tells that the last hike in the rates has not majorly helped the economy. Currently, the data on the upcoming rates are heating up as the US employment market still stands strong that has kept up the buying power. And hence the analyst believes that breaking the job market is the most powerful tool in combating inflation.
Therefore, only a shift to neutrality may provide a strong base for the next crypto bull market. But before that, the analyst believes many more hikes in the rates, of about 175 bps may be incoming with tightened FED policies.
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Source: https://coinpedia.org/price-analysis/inflation-rates-to-be-normalised-in-2023-will-this-ignite-a-bitcoin-bull-market/