Bitcoin fell below $26,000, Ethereum broke below 1400! Fed or more interest rate hikes?

According to Tradingview data, Bitcoin (BTC) has been falling since falling below the $30,000 mark on the 10th. Today, it tumbled more than 9% to $25,728 in a single day, hitting a new low since December 2020; Ether (ETH) single-day It tumbled more than 10 percent to $1,362, its lowest level since February 2021.

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According to Coinmarketcap data, the rest of the major currencies also tumbled, with Binance Coin (BNB) down 9.28%, Ripple (XRP) down 6.03%, Cardano (ADA) down 13.81%, and Solana (SOL) down 13.36% , Polkadot (DOT) tumbled 11.01%, Dogecoin (Doge) tumbled 12.14%, and Avalanche (AVAX) tumbled 16.91%.

As ether fell to its lowest level since February 2021, data from on-chain data analysis firm Glassnode shows that the number of ethereum addresses in a state of loss has hit a record high of 36,321,323.268.

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The Fed is more likely to raise interest rates

As the U.S. consumer price index (CPI) unexpectedly surged 8.6% in May from a year earlier, hitting a new high since 1981, Bloomberg reported, bolstering market expectations that the U.S. Federal Reserve will see the U.S. Federal Reserve every month by the end of September. The expectation of a rate hike of 2 yards (50 basis points) at the next meeting does not even rule out the possibility of a rate hike of 3 yards at a time.

Sarah House, senior economist at Wells Fargo, sees little chance of a surprise three rate hike by the Fed this week, as the Fed may not be willing to surprise markets, but may see Fed Chair Powell (Jerome Powell) stated more clearly at the post-meeting press conference that if inflation does not fall, it is possible to raise interest rates by 3 yards at a time in future meetings.

The Fed will hold a two-day interest rate decision meeting on Tuesday and Wednesday, and Powell will hold a news conference after Wednesday’s meeting. Previously, Powell had signaled a 50-basis-point rate hike in June and July and said officials would continue to push for rate hikes until they saw inflation fall in a clear, convincing way.

St. Louis Federal Reserve Bank President James Bullard has stated that a 75-basis point rate hike is worth considering, although he opposed a 75-basis point rate hike at the rate decision meeting in May, but he did not put any possibility of raising interest rates by 75 basis points. sex is permanently excluded, instead emphasizing the need for policy to remain flexible.

Economists at Barclays predicted that the Fed would raise interest rates three yards this week. Barclays economists led by Jonathan Millar wrote in a report that the Fed now has good reason to raise interest rates more than expected in June, pointing out that it is a critical moment, either in June or July. With a big rate hike, we’re revising our forecast for a 75bps hike by the Fed on June 15.

Separately, Roberto Peril, director of global policy research at Piper Sandler, said: If such high month-on-month inflation data persists, the odds of a 50-basis point rate hike after July are much higher. I also don’t rule out a 75bps rate hike, Powell said they weren’t actively considering it in May (a 3-yard hike), but probably in the future if inflation doesn’t show signs of abating.

Michael Pearce, senior U.S. economist at Capital Economics, a U.K.-based economic research consultancy, also said in a report that U.S. inflation data unexpectedly climbed in May, adding to the continuation of the Fed’s move to raise interest rates by 2 yards at a time. The possibility of this fall could even lead the Fed to raise rates by 3 yards at its meeting this week.

The US dollar interest rate hike may cause the US dollar to continue to appreciate relative to other currencies, and in the current environment where mining machine prices are at a trough, investing in mining machines with some non-dollar assets may be one of the ways to preserve value against the market.


Post time: Jul-24-2022