Yesterday, when the US released its better-than-expected September job figures, the price of bitcoin experienced a rather unexpected decline.
With the exception of Ripple, most altcoins are currently in the red. Popular cryptocurrency analyst Nicholas Merton said that as long as the US Federal Reserve maintains its firm stance, the price of bitcoin could slide lower.
The DataDash host cautioned the investors in a new video update that Bitcoin may see fresh bear market lows as long as the Federal Reserve keeps enforcing strict monetary rules.
Prior to this, the Federal Reserve was easing and cutting interest rates quantitatively, he said. It is currently doing the opposite by tightening it up quantitatively.
Since interest rates began to decrease in the 1980s, it has increased interest rates at the fastest rate it has in recent years.
Additionally, the Fed is starting to shrink its balance sheet. They are joining a pattern of reducing US Treasury volumes, month after month, and they will eventually begin selling mortgage-backed securities.
Which amounts to the money supply losing tens of millions, if not hundreds of millions, of dollars. These assets are being sold by the Fed for less money, which is then lowered. It is derived from the available cash.
btc price To make $12k?
Merton also predicts that there will be further selling pressure on bitcoin unless the Federal Reserve is successful in controlling inflation.
Bitcoin’s price may drop to as low as the $10,000 to $12,000 level, according to Merten, but at that point, he claims, a significant chance for BTC bulls arises.
“When we get to that range, no one will want to buy bitcoin. Everyone will be thinking crypto is going to zero. It’s all over. It’s done. It’s the kind of range where I’m really into.” I’m excited. Unexpected dedication. That’s where you find generational buying opportunities when no one else is willing to pull the trigger, but you will
