The host of the Coin Bureau YouTube channel is warning that rising interest rates will have a negative impact on crypto assets.
Coin Bureau Host says His 80,300 YouTube subscribers suggest that Bitcoin (BTC) could drop more than 35% from current levels with rising interest rates.
“Now the higher interest rates climb, the less attractive risky assets such as stocks and especially crypto will be to investors.
With the prospect of further sell-offs many are now predicting that BTC could drop as low as $12,000 in the coming months which, sure, makes our current struggles around $18,000 look almost palatable in comparison.”
Bitcoin is trading at $19,280 at the time of writing.
According to Coin Bureau Host, an expected 0.75% rate hike by the Federal Reserve may already be priced in, reducing the possibility of Bitcoin falling by more than 35%.
Coin Bureau Host, however, said rates could be raised by a higher figure based on a tool used to predict the Federal Reserve’s interest rate decisions – FedWatch tool.
“There is now a good chance that the market has already priced in this 75 basis point rate hike which means a dip to $12,000 is unlikely, at least in the next few weeks.
However, consider the fact that according to the FedWatch tool, there is currently a 20% chance that we will see a full 1% rate hike. Now it would be the biggest single rate increase in 40 years.”
In addition to rising interest rates, the coin bureau host said bitcoin is facing other threats such as a negative technical outlook and increasingly short positions.
“According to data from the CFTC, many institutional short positions have opened for BTC [Commodity Futures Trading Commission].
Although there are those who prefer to believe in technical analysis, there is not much comfort either I am afraid.
In short, whether you’re into stocks, crypto, or really anything else, this winter sucks.”
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