Dirty Trick are Played on Bitcoin! Analyst's New Forecast Scared!

While the cryptocurrency market is in a vicious circle. A senior analyst made an interesting warning about Fed monetary policy and Bitcoin (BTC).

Dirty Games are Played on Bitcoin! Analyst's New Forecast Scared!

Bitcoin News - While the cryptocurrency market is in a vicious circle, a senior analyst gave an interesting warning regarding Fed monetary policy and Bitcoin (BTC).

The Fall in Bitcoin Is Not Over!

Bitcoin and Ethereum (ETH) continues to exhibit unstable price action. Bitcoin price has dropped over 6% last week. BTC is still trading below $20,000 as of now. Ethereum price has also dropped close to 3% in the last 7 days. ETH, which is counting the days for the Merge update, has not been able to give what was expected recently. The cryptocurrency market has been hit hard by the hawkish stance of the Federal Reserve. Fed Chairman Jerome Powell admitted that the fight against inflation will eventually bear fruit, but that the US people will go through a difficult time in the process. As economic uncertainty continues, leading analyst Benjamin Cowen warns investors of the Fed's new monetary policy. The expert believes that the Fed will not be printing money anytime soon to protect the risk asset markets. According to the analyst, Bitcoin is in the 15th position due to the data in September.

The Federal Reserve plays a big role in the cryptocurrency market. Since the start of 2020, Bitcoin has been highly correlated with stocks. BTC has especially followed tech stocks lately and shows a strong correlation with the tech-focused NASDAQ. Therefore, macroeconomic factors continue to play a large role in Bitcoin prices. Bitcoin rose after the data released back-to-back, first the Consumer Price Index and then the Personal Consumption Spending, pointing out that inflation has lost momentum. However, the Federal Reserve insists on rate hikes. Even Fed officials who took a dovish stance, such as the chairman of the Minneapolis Fed branch, Neel Kashkari, took an aggressive stance against inflation.

The Fed Is Doing It On Purpose!

It looks like the Fed will raise rates by another 75 basis points at its next FOMC meeting. Some experts even put forward their expectations for a 100 basis point rate hike. Cowen believes the Fed wants risky assets like cryptocurrencies to crash to fight inflation. The analyst also warns investors that the Fed will not step back from monetary policy in the short term.

According to the analyst, some data in the short term may cause a bullish trend in Bitcoin , but in the long term it will be dangerous. The only hope for investors is that inflation will fall to the desired level and the Fed will not raise interest rates.