Technology

Crypto Crash: Is the Worst Case for Bitcoin and Crypto Happening?

Satoshi Act Fund CEO and Founder Dennis Porter believes Bitcoin prices will be “very, very low.” The cryptocurrency market is crashing hard as the dollar continues to show extreme strength. Bitcoin is down almost 6% in the last 24 hours and more than 8% in the last 7 days.

Porter also reports that many of his inner circle consider the current economic situation to be the worst macroeconomic situation in a lifetime.

The strength of the dollar sinks bitcoin

The dollar continues to strengthen and hit a new 20-year high. US 10-year Treasuries also strengthened in anticipation of the Fed’s aggressive stance. The dollar’s rise drove the S&P 500 and NASDAQ 100 down. Bitcoin, which is highly correlated with tech stocks and the tech NASDAQ, also fell.

The dollar recovery showed no signs of slowing down. The Bloomberg article notes that the Fed’s stance could become much more aggressive. Fed Chairman Jerome Powell is believed to follow in the footsteps of former Fed Chairman Paul Volcker. The latter likely pushed the US economy into recession by becoming hawkish about inflation.

If the Fed continues its quantitative tightening, the dollar may continue to see new highs. In his Jackson Hole speech, Jerome Powell reaffirmed his stance on strengthening the dollar to fight inflation. The Intercontinental Exchange dollar indicator indicates that the dollar is still a third lower than it was in 1985 under the Volcker regime.

How low can BTC fall?

Experts believe that Bitcoin dominance is currently at a support level. If BTC continues to fall, it could reach extremely low levels. Richard Hart, a major crypto influencer, believes that bitcoin will drop to $11,000 before any upside movement occurs.

All eyes are now on the September 13th CPI data release. Favorable data on the CPI could ease the downward pressure from the Fed’s hawkish activity on bitcoin and could lead to a rally in BTC.

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