Bitcoin (BTC) attempted to breach local lows on September 16 as the latest downtrend between cryptos intensified.
No relief for BTC bulls after the merger
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD approaching $19,600 at the time of writing, with support from buyers simply avoiding further decline.
The level had remained in place as an intraday floor at the end of the Ethereum merger, only to trigger a sell-off, which took Ether (ETH)/BTC to three-week lows.
Amid the gloomy mood, traders and analysts showed little inclination to reassess their market outlook.
“I’m confident with the fast pump scenario at 23k on BTC and 1800 on ETH and big dump from there,” Crypto’s Il Capo wrotereiterating a long-standing theory:
“Time will tell us.”
Warning that the situation “doesn’t look good”, meanwhile, the popular CryptoBullet account demanded a recovery of the 100-period moving average (MA) to swing higher on the 4-hour chart.
Now it doesn’t look good
Same condition – collect the MA100 and I’ll be optimistic pic.twitter.com/sbogDrqkcE
— CryptoBullet (@CryptoBullet1) September 16, 2022
Fed rate hikes will send stocks tumbling – Dalio
After another day of losses on US equities, investor Ray Dalio drew further bearish conclusions on what the current inflationary climate would mean for markets.
Related: Ethereum Traders Shorted ETH Price in Record Numbers During Merger – 50% Crash Ahead?
In his last blog post published on September 13, Dalio predicted that the combined damage to stocks would cost them 30% of their current valuation.
“Rising interest rates will have two types of negative effects on asset prices: 1) the present value discount rate and 2) lower incomes generated by assets due to weak l ‘economy. We have to look at both,” he explained:
“What are your estimates for these?” I estimate that a rise in rates from where they are at around 4.5% will produce a negative impact of around 20% on equity prices (on average, although greater for longer duration assets and less for those with shorter duration) based on the present value discounting effect and a negative impact of around 10% from the decline in income.
This would spell danger in the highly correlated crypto markets, with Bitcoin aiming for levels closer to $10,000.
As Cointelegraph reported, this number is currently no stranger to the radar of long-range forecasters.
The Federal Reserve is expected to adopt another 75 basis point interest rate hike at next week’s meeting of the Federal Open Markets Committee (FOMC), with some market participants even expecting 100 basis points, according to data from the CME FedWatch Tool.
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