Striking Statement from the Analyst: 80 Percent Drop in Cryptocurrencies!

The senior analyst made striking comments about the crypto money markets in his statements on Youtube! Here are the details!

Guy, host of the popular YouTube channel Coin Bureau, suggested that the rise in interest rates as a result of the actions of the Federal Reserve could have a devastating effect on the prices of cryptocurrencies.

FED Barrier to Cryptocurrencies

The crypto market is likely to accelerate the sale of assets that the Federal Reserve (FED) says consists of U.S. Treasuries and mortgage-backed securities from September on to its 2.1 million subscribers on YouTube , the expert analyst known as Guy . In his statements, the senior analyst suggested that the sales may have a profound effect on interest rates, and included the following statements:

I think the reason for the uncertainties in the markets is that interest rates on US Treasuries and mortgage-backed securities are essentially determined by price, which results in a lower price and higher interest rates. As the global economy continues to slow, it's unclear whether there will be enough buyers to absorb the shock as the Fed sells billions of dollars of assets I mentioned, which means the prices of cryptocurrencies will fall. It also means that set interest rates will rise faster than investors can handle, causing markets to crash further. This is exactly what the Fed was aiming for in 2018 with its move to shrink its balance sheet.

Altcoins May Lose 80 Percent!

In 2018, the S&P 500 lost about 20% of its peak value of 2,940 points. Senior analyst Guy emphasizes that if the events that took place in 2018 were to happen today, it could create a significant problem for cryptocurrencies . Guy said the following in his speech:

Given that cryptocurrencies are highly correlated with the stock market, drops of up to 40% could be observed across the cryptocurrency market early next year if the policy is implemented. Even for altcoins with medium and small market capitalizations , this rate can vary between 60% and 80%.

On the other hand, the Coin Bureau server suggested that Bitcoin (BTC) , the leading cryptocurrency, may be less affected by the decline than altcoins. Senior analyst Bitcoin said in his statements:

Bitcoin will have the lowest percentage of possible losses in value. In addition, most investors may not be able to handle these losses if the possible bearish scenario occurs.