US Европским тржиштима glide in caution ahead of crucial interest rate hikes by the US Fed. The rising inflation has turned out to be mounting cold feet for Битцоинери around the world, specifically the US traders. The nation has experienced an acute rise in consumer inflation over the year. However, the 1st interest rate tapering is scheduled for winter, the flagship asset needs to handle this market tantrum cautiously.
Tapering Tantrum to Hurt Bitcoin Price?
Битцоин цена has been on the rocks with no significant gains since the US Feds’ decision on tapering of interest rate hikes in 2022. In 2021 alone, the United States has printed over 100% of the USDs in circulation. Wherefore leading record break rise in inflation to 100% in 2021. However, the governmental agency is likely to taper interest rate hikes post it concludes the bond-purchase event in March.
One of the analysts from the Crypto fraternity is optimistic about Bitcoin gaining strength eventually after interest rate hikes. He correlated growth in the stock market returns during the initial six months since the 1950s. Whilst 10 of the 13 such events since the 1950s had positive returns of an average of 5.1% over the first six months. Moreover, the bullish stock market always yields virtuous for Bitcoin price action.
Yet things appear to be foggy for the flagship asset’s price action after the initial six months of tapering, where traders might start to debt their holdings. However, as market inflations are generally bad for the risk assets, Bitcoin is likely to remain volatile in this period in alignment with the stock market’s volatility.
Collectively, in the short-term, the most dominant asset remains bullish as it is on the verge of accomplishing the 13th-year celebration of its first-ever transaction on January 12th. It is expected to undergo a short supercycle to strengthen its price levels above $50k. The macro outlook remains opaque as potential US inflation is likely to hurt the Битцоин цена action for the next two years. The smart traders call it the best buy opportunity as the asset looks feasible to take a parabolic move post the market recovery.
Source: https://coinpedia.org/bitcoin/btc-price-to-moon-shot-on-jan-12th/