- The announcement of the monetary policy of the United States (US) central bank, also known as the Federal Reserve (The Fed), risks triggering an "earthquake" in financial markets. As a result, the price of bitcoin which has recently been difficult to strengthen and is stuck below US$ 40,000/coin is predicted to collapse again.
Bitcoin was previously billed as digital gold, and was considered a safe haven status . But the reality is that this year the cryptocurrency with the largest market capitalization is actually moving like a risky asset.
So far this year, bitcoin is down 15%, the same is true for the S&P 500 index, which has fallen more than 13%. On the other hand, the safe haven asset of gold so far this year has increased by more than 3% and has even shot up more than 13% and almost broke the all-time high.
In today's trading, Tuesday (3/5/2022) at 10:59 WIB, bitcoin is trading at around US$ 38,503/coin, down 0.46% in the last 24 hours, according to CoinMarketCap data .
Other crypto assets, ethereum edged up 0.23%, BNB 0.38%, XRP also up 0.7%. Teraa and Cardano were up 2.5% and 0.6% respectively while Dogecoin was down 0.6%.
Early Thursday, the Fed is expected to raise interest rates by 50 basis points to 0.75%-1%. In fact, in the rest of the year, they will continue to raise interest rates to reduce inflation.
Citing CME FedWatch, the market is 'betting' the benchmark interest rate will be raised 50 basis points (bps) to 0.75-1%. The odds are 99.3%.
Before the Fed, the Australian central bank (Reserve Bank of Australia/RBA), is expected to raise interest rates today, following global trends.
The results of a Reuters survey conducted on April 27-29 of 32 economists showed the majority expected the RBA to raise interest rates by 15 basis points to 0.25% from the current 0.1% which is a record low in history.
If the predictions are correct, this will be the RBA's first rate hike in 10 years.
In addition, the survey shows the RBA will be expected to be aggressive in raising interest rates. As many as 23 of 32 economists predict that in June, interest rates are expected to be raised again to 0.5%, 4 economists even predict interest rates to be 0.75%.
An increase in interest rates means that the expansion of the business world is at risk of slowing down due to rising credit interest rates, this will also have an impact on the economy. This puts risk assets under pressure.
Launching Financial Express , many analysts now expect bitcoin to sink further if it doesn't hold above $38,000/coin.
"If bitcoin loses its footing at $38,000, then further support in the $36,000 and $33,000/coin area will be reached," said Darshan Bathija , CEO and Co-Founder of Vauld. /2022).
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