Date for Bull Market and Next Bitcoin Level Announced!

Goldman Sach warned about the possibility of Bitcoin (BTC) falling as low as $12,000. Experts from the firm say there are a number of macro indicators that could trigger BTC's decline. Economists working with Goldman Sachs, led by Jan Hatzius, are of the view that the alarming movement of the Fed Funds Rate will likely trigger the drop.

The impact of the Fed Funds Rate on BTC price

As you have been following on cryptoify.blogspot.com, according to experts, the Fed will raise rates by 0.75% this month. However, another 0.5% hike will come by November. Moreover, these figures were above economists' previous forecasts of 0.5% and 0.25%.

Notably, the Fed rate hike has a strong impact on predicting Bitcoin price movement in 2022. When there is a Fed rate hike, investors usually shift to less risky investments. Therefore, a rate hike forces them to withdraw funds from BTC assets to other "safe assets". Investors pulled significant funds from BTC assets when the Fed rate rose from almost zero to around 2.25-2.5%.

It's worth noting, by the way, that BTC went through a violent period in 2022. Over the year, BTC witnessed a year-to-date drop of nearly 60%. Now, it is trading around $20,000. The drop in the price of Bitcoin has also triggered unrest in the entire cryptocurrency space.

The impact of the Fed Funds Rate on BTC price

This unrest has caused companies in the cryptocurrency space to enter a difficult period. Some projects collapsed during this period. Some prominent firms laid off some of their staff and cut spending. The stormy days seem to be over. But emerging symptoms may trigger another round of unrest.

Warnings about Bitcoin investment

Due to the emerging signs, analysts are warning investors to be wary of the rising Fed Funds Rate. An analyst with the pseudonym Doctor Profit says that the BTC price is currently at a bottom. The analyst warns that if the Fed raises interest rates by 1% instead of 0.75%, the BTC price could fall. Doctor Profit urges investors to be cautious about the hike and consider the Fed's subsequent decisions.

Meanwhile, there is another indicator pointing to a potential price drop for BTC. Obviously, BTC has a positive correlation with the US stock market. Now, there seems to be a sign that there is a potential risk in this respect.

In this regard, Goldman Sachs strategist Sharon Bell has been warning investors to be careful lately. In this regard, Bell says that the recent activity in the stock market could be a bull trap. The strategist cites Goldman Sachs' warnings that stocks could fall 26%. According to Goldman Sachs, the decline will begin if the Fed intensifies its efforts to fight inflation.

Source: crypto-news-flash.com