The Fed will not save the US from economic collapse by raising interest rates, so risk assets will suffer, warns Michaël van de Poppe.
Bitcoin
BTC
you fall down
$22,325
could face a reassessment of $20,000 and the United States will fall short of its plans to “stay soft” on inflation, a new analysis says.
YouTube February 5 Contributor of Cointelegraph Michaël van de Poppe, founder and CEO of trading company Eight, warned that the tide will turn to risk assets.
US ‘maybe’ heading for recession – Van de Poppe
Amidst confusion about how the lack of US macroeconomic data could affect sales, Van de Poppe says there is a chance that the growth seen in cryptocurrencies and stocks this year may be subdued.
For example, Bitcoin, met with 40% in January, but like others, he believes that a disappointing February is a real possibility.
“I think people need to understand that there is no soft spot, this downward trend in the market is likely to continue,” he said of the long-term trend.
The US, Van de Poppe continued, “probably will have” a recession due to the Federal Reserve raising interest rates.
A possible retest target for BTC/USD is $20,000-$21,000 in case of weakness.
Much depends on the outcome of the January consumer price (CPI) data, which is due on February 14. If they show that inflation is lower than expected, or interrupt this decline, the results may be good for the US dollar, while. reducing the rally in risky assets.
The US Dollar Index (DXY), as reported by Cointelegraph, is currently consolidating after the 2022 low. in the mid-2000s they fell 13% after hitting a twenty-year high.
In this case, the dollar will come next week, or next week with CPI and PPI, so it is very important to watch this chart,” added Van de Poppe.
Bitcoin Bear ‘Stuck With Money’
Meanwhile, some are arguing about a drop in BTC price ahead of a small macroeconomic week.
Related: Bitcoin Holds 23.5K USD as Trader Says BTC Is ‘Flat’ in 2020
The well-known trader Crypto Tony, who suggests that the bear market is always playing, the low can be the best entry point.
“Although it was the beginning of a bull market, and I personally am in the camp where we are not.” You can get a safe and secure entry with a high minimum withdrawal,” he told his Twitter followers that day.
However, some prominent bullish voices were as active as ever, including cryptocurrency and market education, analytics and forecasting tool IncomeSharks.
“It seems people are still confused as to why this is happening,” it concluded on February 3.
According to Cointelegraph Markets Pro and TradingView, at the time of writing, BTC/USD was trading around $23,400 with about 15 hours left in the US week.
“Remember that many bulls are still holding on and not selling.” Bears are tight on money. Slowly but surely the bear is letting it in and buying. Stubborn people often underestimate the value of driving.
