Cryptocurrency Braces For Another Collapse As Fed Diminishes “Soft-landing”

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The Federal Reserve continues  its hawkish stance to curb . The for August revealed worse-than-expected inflation. The Fed reaffirmed its commitment to curbing inflation by moving forward with a jumbo hike of 75 bps. More importantly, Fed chair seemed to move away from his past comments about a .

The cryptocurrency community is bracing for another collapse as prices continue to fall with now bottom.  (ETH) fell below the $1.3K mark while Bitcoin (BTC) is swinging in the $18K – $19K range. In the last 7 days, most of the crypto  have been trading in the red.

Is A Soft Landing Possible

The Fed moved forward with another 75 bps hike. More importantly, it is unlikely that the Fed is likely to pivot any time soon. Even positive trend market participants, like Marko Kolanovic, expect a 100 bps mega hike before the end of the year.

The Fed wants to attract the inflation level down to under 2%. Even the Fed’s prediction outlines it will take till 2025 to reach this target. Major expert, @MacroAlf, outlines on that the 5 largest economies in the world are experiencing the fastest slowdown in credit creation. He does not believe a soft landing to be at all likely. 

Lisa Abramowicz of Bloomberg Television outlines that Fed chair Powell is moving away from his prediction of a soft landing. Powell believes that stable prices are the fundamental of a functioning economy. The Head of currently worth Hindsight mutuals outlines that this is the worst FOMC of all. He describes that he the entire idea of a soft landing. 

Is A Fall Possible

The likelihood of a fall increases by the day as the Fed continues  its hawkish stance. The World Bank has already announced a warning for a fall as soon as the upcoming year. The United States has already had two consecutive quarters of negative . Specialists believe that it is extremely likely that a third negative growth quarter will be revealed.

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