Bitcoin price threatens $19.6K as Ray Dalio predicts 30% stocks crash

Bitcoin (BTC) tried to violate native lows on Sep. 16 as the newest cross-crypto downtrend intensified.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

No aid for BTC bulls publish Merge

Data from Cointelegraph Markets Pro and TradingView confirmed BTC/USD approaching $19,600 on the time of writing, with purchaser help simply avoiding an additional drop.

The degree had remained in place as an intraday ground as the Ethereum (ETH) Merge concluded, solely to spark a sell-off, which took ETH/BTC towards three-week lows.

ETH/BTC 1-day candle chart (Binance). Source: TradingView

Amid the gloomy temper, merchants and analysts confirmed little inclination to reassess their market outlooks.

“I feel confident with the scenario of quick pump to 23k on BTC and 1800 on ETH and big dump from there,” Il Capo of Crypto wrote, reiterating a long-held idea.

“Time will tell.”

Warning that the scenario “doesn’t look good,” in the meantime, widespread account CryptoBullet demanded a reclaim of the 100-period shifting common (MA) to flip bullish on the 4-hour chart.

Now this does not look good

Same situation – reclaim the MA100 and I’ll be bullish

— CryptoBullet (@CryptoBullet1) September 16, 2022

Dalio: Fed fee hikes will see stocks tumble

After an additional day of losses on United States equities, in the meantime, investor Ray Dalio drew some recent bearish conclusions about what the present inflationary local weather would imply for the markets.

Related: Ethereum merchants shorted ETH price in file numbers in the course of the Merge — 50% crash forward?

In his newest weblog publish printed on Sep. 13, Dalio predicted the mixed injury for stocks would price them 30% of their present valuation.

“The rise in interest rates will have two types of negative effects on asset prices: 1) the present value discount rate and 2) the decline in incomes produced by assets because of the weaker economy. We have to look at both,” he defined.

“What are your estimates for these? I estimate that a rise in rates from where they are to about 4.5 percent will produce about a 20 percent negative impact on equity prices (on average, though greater for longer duration assets and less for shorter duration ones) based on the present value discount effect and about a 10 percent negative impact from declining incomes.”

That would spell hazard throughout highly-correlated crypto markets, with Bitcoin thus taking goal at ranges nearer to $10,000.

As Cointelegraph reported, that quantity is at the moment no stranger to long-term forecasters’ radar.

The Federal Reserve is tipped to enact an additional 75-basis-point rate of interest hike at subsequent week’s assembly of the Federal Open Markets Committee (FOMC), with some market individuals even anticipating 100 foundation factors, in accordance with knowledge from the CME FedWatch Tool.

Fed goal fee chances chart. Source: CME Group

The views and opinions expressed listed below are solely these of the writer and don’t essentially mirror the views of Every funding and buying and selling transfer includes danger, it is best to conduct your individual analysis when making a call.


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