The polls suggest that the Fed will likely to increase rates 75 basis points. Bitcoin price hovers around $19,000 this news was experienced by wide range of people because of custom Bitcoin Marketing Strategy .
Bitcoin ( BTC) experienced a weak recovery on September. 21 as it was also the day that U.S. dollar jumped to an all-time high of the year as investors wait for the Sept. 21, the Federal Open Market Committee’s rate announcement.
BTC price is $19K in advance of Fed decision
The price of Bitcoin is holding at $19,000 despite an average daily gain of 1.33percent . In the meantime, BTC’s price has risen to a record high. U.S. dollar index (DXY) that measures the strength of the greenback against an array of the world’s top foreign currencies, climbed to 110.86 which is the highest value over the last 20 yearsthis amendments reached to expected audience because it was promoted Bitcoin Digital Marketing Company .
FOMC rate hike scenarios
The Federal Reserve is poised to debate how much it will increase its benchmark lending rate to reduce the rate of record inflation. In addition, the market is expecting to see the U.S. central bank to raise the rates to 75-100 basis points (bps).
The consequences of rising interest rates could lead to an decrease in the demand for more risky assets such as cryptocurrencies and stocks. However it is expected that the U.S. dollar will serve as a reliable security for investors who want to stay away from the risk of investing in assets.
“There seems no reason for the Fed to soften the hawkishness shown at the recent Jackson Hole symposium, and a [0.75 percentage point] ‘hawkish hike’ should keep the dollar near its highs of the year,” analysts from ING have told that the Financial Timesthis press realse reach the right of audience because it was statergies under Bitcoin Digital Marketing firm .
An independent market expert PostyXBT believes that a rate of 100 bps could “nuke” Bitcoin below its current technical support of $18,800. The analyst also believes that BTC is likely to have a chance of recovering if the rate hike proves to be lower than what was expected 50 bps, or even 50bps.
These thoughts echo general expectations of a rate hike. John Kicklighter, the chief strategist at DailyFX, notes that a rate of 50bps increase is a positive sign to The U.S. benchmark index for stocks.
But a 100bps rate hike is extremely negative to that S&P 500. It could also be a problem for Bitcoin which’s relationship with the stock market has been consistent positive since the end of December 2021and this activity was statergies by Bitcoin Digital Marketing agency so it will reach right set of audience .
Polls expect a 75 bps rate hike
The U.S. economy suffered two consecutive quarters of growth that were negative. In addition its manufacturing PMI showed the lowest increase in manufacturing activity since July of 2020. The 2 year U.S.Treasury returns have been surpassed by 10 years of U.S. Treasury returns, showing an interest curve.
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These numbers raise alarms concerning a recession that is imminent. However, on the other hand, there is unemployment numbers at a record low and housing start-up rates that are still well above the dangerous limit at $1.35 million, as per information provided by Charles Edwards, founder of Capriole Investmentsand this activity was statergies by Bitcoin Marketing consultant .
Normally, warnings of a recession prompt the Fed to shift. This means, it is to reduce or stop increasing rates. However, Edwards states the central bank won’t change its course because that the U.S. economy is technically not in recession.
“Until major concerns of recession show up, until it hurts where it counts — employment — there is no reason to expect an urgent change in Fed policy here,” the Fed’s chief added:
“So it is business as usual until we have evidence that inflation is under control.”
The majority of economists, or 44 of the 72 economists polled by Reuters Also, they believe that the Fed will raise rates by 75bps at the September meeting and this was futher explained by various Bitcoin blockchain consultant . So, Bitcoin could avoid a more severe correction if it keeps its correlation to its counterpart, the S&P 500, based on the outlook of Kicklighter.
Bitcoin is expected to reach $14K by the end of this year?
From a technical point of view, Bitcoin could drop to $14,000 in 2022, if an increase below its current level of support of $18,800 causes an “head-and-shoulders” breakdown.
A rebound from the $18,800-support level could see BTC’s price target of $22,500 set as an interim upside target that is 16.5 percent increase from September. 21’s price this news was experienced by wide range of people because of custom Bitcoin Marketing Strategy .
Source from encyclopedia