Bitcoin, SHIB and altcoin prices corrected sharply on Tuesday evening. On top of that, the total value of the cryptocurrency market fell by 7.5% to $986.4 billion. Behind the crash was US inflation data released on Tuesday. Accordingly, the data revealed an increase of 8.3%, despite the experts’ expectation of an annual increase of 8%. Worsening inflation triggered a selloff in stocks and BTC.
Bitcoin, SHIB and altcoin correction over?
With the entire cryptocurrency market trading in the red, 6 analysts shared their forecasts for Bitcoin, SHIB and altcoin assets. Analysts scrutinized the macroeconomic situations around the Fed and inflation, as well as the state of the crypto market itself. We, as Kriptokoin.com, have compiled these predictions for you.
“Inflation triggered selling among Bitcoin investors”
“Excessive inflation triggered a stock market sell-off that drove Bitcoin as well,” said Edward Moya, senior market analyst at OANDA. According to him, the probability of a soft inflation decrease and the end of interest rate hikes is low. Bitcoin fell because of this, reminding investors once again that this risk asset is affected by the economy. According to Moya, BTC will not rally unless global inflation and rate hikes end.
“We haven’t seen the bottom in BTC price yet”
Justin Bennett warned investors yesterday not to be “too comfortable”. Then, he said, a major crash for cryptocurrencies and stocks is coming. Also, the famous trader said that besides Bitcoin, SHIB and altcoin assets, we do not see the bottom in stocks. According to him, we will reach a new low in these asset classes in the coming months.
“A rate hike of 100 basis points is coming”
Meanwhile, famous crypto analyst Michael van de Poppe warned that the FED will implement the worst-case scenario. According to him, the FED will increase by 100 basis points at the FOMC meeting, which is expected to take place on September 21. Bitcoin, SHIB and altcoin prices are extremely sensitive to the Fed’s rate hikes. However, BTC’s correlation with stocks also makes things worse for the asset. If the Fed raises interest rates at this rate, a sell-off in the stock and crypto market is likely to be triggered.
“The number of addresses holding more than 10 BTC is increasing”
Santiment said that the number of addresses holding 10 or more BTC has increased since February. The data analytics platform said, “Over the past 7 months, the amount of these shark and whale addresses has increased by 3.6% on the network. Thus, it has returned to its highest level in 19 months.”
“The hype around Ethereum Merge continues”
On the Ethereum side, the hype surrounding the altcoin’s Merge upgrade remains intact. Stripe CEO Patrick Collison made a statement on Tuesday. Accordingly, he said “Merge” is “one of the coolest examples of sustained, ambitious, technically difficult open source development.” A rally brought about by the leading altcoin upgrade will affect other assets as well. As Cryptokoin.com reported, Ethereum Merge will take place on September 15th.
“Bitcoin will drop 20%”
Fidelity global macro director Jurrien Timmer evaluated Bitcoin price action. According to him, BTC can continue to follow its correlation with the S&P 500. But as it continues to do so, it will face a 20% drop. This drop will cause the price of the leading cryptocurrency to drop to $16,000. Additionally, Timmer underlines that the bear market is not over yet.
“BTC, SHIB and altcoin correction will end on this date”
Two and a half weeks ago, Bitcoin (BTC) completed a price-dominating diagonal (LD) pattern in August and has been correcting since, according to an analyst posting under the Elliott Wave Principle (EWP). At this point, the analyst says he is looking for a “dead cat bounce” and wave-b targeting around $22465-23495 before dropping to the next $20,000 foot. According to him, the ideal target at that time was $19,386. Unfortunately, the bounce ended after $21879 and the price dropped.
However, the analyst’s target target zone for this correction was correct as the cryptocurrency dropped to $1,559 on Sept. Since this drop, BTC has risen to $22,000 and climbed above the 50-day simple moving average (SMA). Now the analyst says that technically enough waves exist to consider wave-2/b is complete and wave-3/c continues ideally up to $37,000.
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