Popular crypto analyst Nicholas MertenHe thinks Bitcoin (BTC) price could drop as long as US Federal Reserve policies remain ‘hawk’.
Sharing a new video on the DataDash channel, Merten continued to follow the tight monetary policies of the Federal Reserve, bitcoin warned that the price could see a new ‘bottom price’ in the bear market.
“The Fed was lowering interest rates and printing money before, so it was doing quantitative easing. Now it is following the opposite path through quantitative tightening. It continues to increase interest rates at the fastest pace since the 1980s…
On top of these interest rate hikes, they continue to shrink their balance sheets. Month by month they are starting to enter a pattern of decline, selling US Treasuries and eventually possibly mortgage-backed securities… This is tens of dollars, if not hundreds of millions of dollars, evaporating from the money supply. The Fed sells these assets for cash, and that cash is running low. The money supply is decreasing.”
Merten also Federal Reserve He thinks Bitcoin will likely see more selling pressure until it reaches its goal of keeping inflation in check.
“The Fed is on the right track but while controlling inflation they now need to take control And because the principles are higher interest rates and quantitative tightening through balance sheet reduction, it causes Bitcoin to fall and lower highs or lower lows emerge until certain conditions the Fed is looking for. will continue to come out. The economy began to slow sufficiently and they were able to return inflation to their 2% target. At the end of the day, the Fed wants that and they’re not going to turn around until these targets are met.”
Merten thinks the Fed’s current policies could push Bitcoin down to the $10,000 to $12,000 price range, but he also claims that this is where a big opportunity occurs for BTC bulls.
“Nobody will want to buy Bitcoin when we get this range. Everyone will think that crypto is going to zero. But that’s the kind of range I’m really excited about. Unexpected capitulation. This is where you get generations of buying opportunities when no one else is willing to pull the trigger, but you will.”
At the time of writing, Bitcoin is trading at $19,612.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.