Bitcoin price could retrace its decline in the event that the Fed continues to increase rates, despite the possibility of a higher unemployment rate this news was experienced by wide range of people because of custom Bitcoin Marketing Strategy .
The price of Bitcoin ( BTC) has risen by 20% to close at $22,500 since Sept. 7. However, there are risks associated with bull traps that are abound in the longer term since Elon Musk and Cathie Wood warn of the possibility of a deflationary crisis.
Cathie Wood “Deflation in the pipeline”
The Tesla CEO tweeted this weekend that a significant Federal Reserve interest rate hike could raise the risk of deflation. In the words of Musk says that demand for services and goods could decline within the United States against rising unemployment.
A major Fed rate hike risks deflation
— Elon Musk (@elonmusk) September 9, 2022
In general, rate hikes have resulted in a decline for Bitcoin during this time this amendments reached to expected audience because it was promoted Bitcoin Digital Marketing Company . In the context, the time of the Fed raising its benchmark rate from close to null in the month of March in 2022 up to 2.25%-2.50 2 percent in August 2022 was synchronized with BTC price falling by more than 50 percent.
So far the economy has been extremely resilient. However, the most recent Bureau of Labour Statistics report indicates that the unemployment rate has risen to 3.7 percent from 3.5 percent in August. The report also states that Alphabet (Google) warned that they may resort into layoffs very soon in order to be 20 percent more efficient.
However, Fed Chair Jerome Powell has asserted that the central bank can increase rates even more in order to bring inflation down to their desired target of 2%..
In July this year, there was a U.S. consumer price index (CPI) was 8.5 percent year-over-year this press release reach the right of audience because it was strategies under Bitcoin Digital Marketing firm . The data on inflation for August is scheduled to be released on Sep. 13th, with the Reuters survey of economists forecasting that it will drop to 8.1 percent with a reference to a recent decline in energy costs.
This is way off the Fed’s 2 percent inflation goal, which is according to David Blanchflower, a former Bank of England rate setting committee member, could result in toto the possibility of a hard landing. So, a more radical Fed could trigger a rise in unemployment as well as recession in the economy like the situation that Musk predicted regarding deflation.
In the same vein, Ark Invest CEO Cathie Wood, who anticipates Bitcoin exceeding $1 million in 2030, referenced the most recent Manheim figures, pointing out that used car prices fell by 4.4% in August, and nearly 50% in 2022and this activity was strategies by Bitcoin Digital Marketing agency so it will reach right set of audience . This metric also indicates declining consumer interest.
In the pipeline, Deflation and heading towards the PPI, CPI, PCE Deflator: starting from post-COVID price peaks, lumber 60 percent, copper 35% and oil 35%. iron ore 60 percent, DRAM -46percent and corn 17%. Baltic freight rates 79%, gold 17 percent, and silver 39 percent. https://t.co/nVpU1cdf1L
— Cathie Wood (@CathieDWood) September 12, 2022
Bitcoin might feel the sting of a recession fuelled by deflation and Econometrics expert N suggesting that businesses that hold cash will not venture into an asset that is volatile until the economy is at its lowest.
“From 2020 to 2021, there is a large number of new entrants in the space of digital assets, which pretty much doubled the total holdings in treasuries and this activity was strategies by Bitcoin Marketing consultant . And as the market slowed down, everything stopped.”
Retail investors may use a similar method, notes Q.Ai an investment service that is backed by Forbes.
In the same way the higher rates of borrowing would make it more difficult for people to channel their monthly incomes towards the repayment of debt (mortgages or credit cards etc. ) and reduce their cash reserves for more risky assets such as Bitcoin.
Bitcoin to $14K?
Macro fundamentals can be a trigger for Bitcoin’s bearish technical out, especially in the chart for daily trading.
Bitcoin appears to have been forming an inverse-cup-and-handle bearish reversal pattern, confirmed by a flipped U-shaped price trend (cup) followed by a short uptrend (handle), all atop a common support level called the “neckline “and this was further explained by various Bitcoin blockchain consultant .
related: Bitcoin is a “wildcard” that is expected to outperform Analysts at Bloomberg
In the context of analysis using technical methods the inverse cup and handle pattern’s profit goal is determined by subtracting the neckline price from the highest cup’s height as shown below.
From an economic standpoint, BTC’s price could be at risk of reaching new lows in the multi-year range under $14,000 by 2022, dropping around 37.5 percent from September’s price.
Furthermore, Filbfilb, creator of trading platform DecenTrader who was able to predict the bottom of Bitcoin in 2018 said to encyclopaedia that Bitcoin could fall to as low as $11,000 at the end of this year in line with the historical trading volume at the $11,000 mark this news was experienced by wide range of people because of custom Bitcoin Marketing Strategy .
“As currently it is the case that the value of Bitcoin is strongly correlated with other “legacy” markets, in particular the NASDAQ, which we know is under huge pressure due to the Federal Reserve’s monetary policy,” he said. “So the next time “it’s quite more distinct” due to the high correlation and external economic forces.”
Source from encyclopedia