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bitcoin (BTC) attempted to breach local lows on September 16 as the latest inter-crypto downtrend intensified.

BTC/USD 1 hour candle chart (Bitstamp). Source: Trading View

No relief for BTC bulls after the merger

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD was approaching $19,600 at the time of writing, with support from buyers simply avoiding further decline.

The level had remained in place as an intraday floor at the end of the Ethereum merger, only for trigger a salewho took Ether (ETH)/BTC to three-week lows.

ETH/BTC 1-day candle chart (Binance). Source: Trading View

Amid the gloomy mood, traders and analysts showed little inclination to reassess their market outlook.

“I’m confident with the fast pump scenario at 23k on BTC and 1800 on ETH and big dump from there,” Crypto’s Il Capo wrotereiterating a long-standing theory:

“Time will tell us.”

Warning that the situation “doesn’t look good”, meanwhile, the popular CryptoBullet account demanded a recovery of the 100-period moving average (MA) to swing higher on the 4-hour chart.

Fed rate hikes will send stocks tumbling – Dalio

After another day of losses on US equities, investor Ray Dalio drew further bearish conclusions on what the current inflationary climate would mean for markets.

Related: Ethereum traders shorted ETH price in record numbers during the merger – 50% crash ahead?

In his latest blog post published on September 13, Dalio predicted that the combined damage to stocks would cost them 30% of their current valuation.

“Rising interest rates will have two types of negative effects on asset prices: 1) the present value discount rate and 2) lower incomes generated by assets due to weak l ‘economy. We have to look at both,” he explained:

“What are your estimates for these?” I estimate that a rise in rates from where they are at around 4.5% will produce a negative impact of around 20% on equity prices (on average, although greater for longer duration assets and less for those with shorter duration) based on the present value discounting effect and a negative impact of around 10% from the decline in income.

This would spell danger in the highly correlated crypto markets, with Bitcoin aiming for levels closer to $10,000.

As Cointelegraph reported, this number is currently no stranger to the radar of long-range forecasters.

The Federal Reserve is expected to adopt another 75 basis point interest rate hike at next week’s meeting of the Federal Open Markets Committee (FOMC), with some market participants even expecting 100 basis points, according data from the FedWatch CME tool.

Fed Target Rate Probability Chart. Source: CME Group

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.