An expert from CryptoJack has issued a warning that Bitcoin could fall as low as $58,000 if the Federal Reserve decides to hike rates at its upcoming meeting. For today’s crypto investors, where volatility is the norm, the consequences of this should not be underestimated.
Fed Rate Hike Looms Over Crypto Markets
The latest analysis from CryptoJack puts the likelihood of a key rate increase by the US Fed at the next session at 35%. In the run-up to the Fed’s decision at 10:30 Dubai time (7 PM GMT), this prospect has been weighing heavily on Bitcoin and has left it at a critical point. The CryptoJack expert notes that macroeconomic developments of this sort tend to elicit strong reactions from crypto prices as risk is re-evaluated across all markets.
Bitcoin’s Price Faces Critical Support Levels
Bitcoin is down to $62,700 from its recent high. The expert believes that it will test the $67,400 support level before making any move in either direction. A rate hike by the Fed could see Bitcoin drop even further, possibly as low as $58,000; CryptoJack has emphasized this in their analysis. For now, with long- and short-term holders at odds, the market appears stuck in a bearish cycle and a near-term recovery is uncertain.
Market Volatility and Reactions
To put the current state of the market in perspective, the expert pointed to about $333 million in liquidations at Ubit in the last 24 hours. Such volatility is a sign of traders making nervous moves in anticipation of the Fed meeting; some are reducing risk while others are trying to take advantage of the sharp price action. As for what to do, the CryptoJack expert advises investors to be cautious and wait until the Fed has made its decision before taking any positions in Ethereum or similar assets.
Source — CryptoJack: https://www.youtube.com/watch?v=bluRYkJuEEs
Stay ahead of market shifts by honing your skills with our risk-free crypto trading simulator. practice risk-free trading.