According to a widely followed crypto analyst, the US Fed will push Bitcoin (BTC) and crypto markets in general further down.
DataDash’s host, Nicholas Merten, shared a new video update. Merten predicts that the Fed could wreak havoc on the crypto industry by continuing to raise interest rates as an anti-inflationary tool.
According to Merten, the Fed will likely push Bitcoin “very soon” below the $20,000 level as it sets liquidity traps.
“Recent statements by Fed Chairman Jerome Powell answering questions from Republicans and Democrats before Congress and essentially trying to explain why the Fed took such a stance on monetary policy…
The Fed probably uses this type of flip-flop narrative mechanism, widely known for much of its history, where it says one thing and does another to its advantage to create liquidity traps to suck up liquidity. Or more specifically, it finds an excuse to add liquidity to the system and meet its two percent inflation target.
The Fed has done that for most of the last decade, except this time it uses enthusiasm and continued optimism as a way to trap liquidity and draw liquidity from the real economy into the financial markets.”
Besides, according to Merten, Bitcoin has not yet separated from traditional markets and the past weeks have been proof of this.
“The past month and a half has provided ample evidence that crypto is not yet separate from everything else. Maybe Bitcoin won’t go down to $7,000 or $10,000 (…) maybe it can still go to $14,000 or $13,000, I’ll gladly wait for that.”
Bitcoin is trading at $22,020 at the time of writing.
You can follow the current price action here.