Crypto Market Crash Could be Worse Than 2008 – Predicts Bloomberg Analyst


The crypto market especially Bitcoin and Ethereum under a sluggish moment since the inflation rate for August was released. The majority of cryptocurrencies are striving for a bull run.

At the time of publication, Bitcoin is selling at $19,387 with a surge of 4.85% in the last 24hrs and Ethereum is trading at $1,361 after a push of 4.65% over the last day.

However, a senior Commodity Strategist at Bloomberg Intelligence, Mike McGlone claims that the US Federal Reserve’s inflation “sledgehammer” which is planning to increase the interest rates will hammer the market performance and cause a crash that will be worse than that of 2008. However, the analyst says that by 2025 Bitcoin and Ethereum will recover and hit new all-time highs.

Bitcoin Price At $100K By 2025

The increasing inflation has forced the Fed to kinke nearly 225bps over the year. Now, ahead of the FOMC meeting, a few of the market participants are expecting the interest rates to be hiked by 75 basis points, while a few are fearing a 100bps interest rate hike which would be the biggest in the last 40 years.

While in conversation with financial news, Kitco News, Mike McGlone warns market participants of a further drop for Bitcoin, Ethereum, and other major cryptocurrencies due Federal Reserve’s action.

Along with Bitcoin, Ethereum has plunged which wasn’t expected as there were high expectations that the ETH merger will push the currency towards new highs. Instead, the upgrade turned out to be a buy the rumor, sell the news kind of event due to which Mike predicts Ethereum to plunge near $1,000 or even more.

Conversely, the expert also predicts that by the end of 2025, Bitcoin will hit as high as $100,000 and also portrays a bullish stance towards Ethereum because of future institutional adoption.

Meanwhile, another analyst, Kristina Hooper, Invesco’s chief global strategist also believes that Fed will play a vital role in the way the market is set to perform in the coming days. On the other hand, Ark Invest CEO Cathie Wood is also on the same stance that Fed’s interest rate hike will see deflation instead.

Was this writing helpful?





Source link

Share