Two crypto experts shared their cryptocurrency price predictions ahead of Wednesday’s 2:00 pm ET FOMC meeting and Jerome Powell’s speech.
Cryptocurrency price predictions for the FOMC meeting
With cryptocurrency prices dropping over the last 24 hours – Bitcoin and Ethereum are down 3-4% – many traders are taking less risk by waiting on the sidelines and turning to online crypto experts for analysis:
Crypto Chase (@Crypto_Chase, formerly @Chase_NL) has around 100,000 followers on Twitter and YouTube and has successfully sold BTC for over $56,000 and ETH for over $4,000.
His FOMC prediction is that cryptocurrency prices will hit a “giga nuke” if the result is a 100 basis point rate hike, which the market says has a 16% chance.
If a 75 basis point upswing is announced, he expects trading to go both ways, with choppy price action and the usual “Darth Maul candles” to break long short positions, until then the long-term evolution of the price of crypto will be determined by Powell’s comments. Fed chairman.
Trading Tank (@TheTradingTank) posted a longer cryptocurrency price prediction for its 7,700 followers in an eight-tweet thread.
His analysis is that as major CPI and PPI data were released and inflation turned out to be higher than expected, the stock and crypto markets may have sold off in response to the 75 basis point rate hike.
Like Chase Crypto, it expects further sell-off if a 100 basis point advance is announced, possibly to test lows (Bitcoin hit $17,600 in June) or further crash.
“A 100 basis point hike is likely to trigger a sell-off and we can expect risk assets to test or even break recent lows. The real economic impact of the rate hike will not fully materialize until six months later, but investors are behaving as if these increases were immediate.”
However, he also notes that a 75 basis point gain could improve sentiment and lead to a medium-term bounce in cryptocurrency prices, which would be like a “return to win” if already priced in.
Following next week’s FOMC meeting, US GDP and PCE inflation data will be released, which Trading Tank says are “equally important.”
Bitcoin price chart for the last month before the FOMC meeting – daily scale
Earlier this week, CryptoNews reported on the price prediction of a third crypto analyst, Ted Talks Macro. He also predicted that the markets had valued the 100 basis point rate and that risky assets such as bitcoin would rise if the 75 basis point rate was announced.
FOMC meeting schedule
The next FOMC meeting, which will take place after Wednesday, is scheduled for November 1-2.
You can find the full schedule of FOMC meetings at Federalreserve.org.