A widely followed crypto trader cites the bearish trend for Bitcoin (BTC) and the larger crypto markets in September. Crypto analyst Jason Pizzino told his 275,000 YouTube subscribers that traders and investors will have a tough time in September due to market “instability.” In addition, another expert name, Alfonso Peccatiello, conveyed his expectations for BTC. Here are the details…
Jason Pizzino pointed out that crypto investors will have difficulties
First of all, Jason Pizzino conveyed his important expectations for September. According to the analyst, September will be full of indecision and will be difficult. Because it risks being turbulent and volatile. The analyst uses the following statements:
September will be indecision. These times are some of the most difficult because they can be choppy and turbulent. Fake ups and downs, thinking the market will go up without you, getting sucked into FOMO (fear of losing), then abandoning in terms of FUD (fear, uncertainty, and doubt). If we can avoid them and realize in September that this is a huge possibility, hopefully this will save us a lot of money, heartache and brain power.
The worst is over for bitcoin
According to the analyst, the crypto bear market is not over and any “explosive gains” are unlikely in the short term. The analyst used the following statements:
The bear is not finished yet. So that’s like disrespect but there might be some lower prices… Generally speaking, I don’t see any explosive gains. Of course I can’t see this thing going up to $40,000 for Bitcoin. I’m glad I was wrong and if he does I’ll probably get some profit because I think it would disappear again. But yes, overall, from what I’ve seen in the data in the past, there isn’t a big increase in September.
But Pizzino says the worst is over for Bitcoin as a bull market will eventually return. “I think the potentially worst for BTC is over. The bull is clearly coming,” he concluded.
Macro Compass writer drew attention to the FED decision for the markets
Alfonso Peccatiello, author of The Macro Compass, said the Fed would “take pains” to reduce inflation to 2 percent. The emerging policy of the central bank will negatively affect stocks and cryptocurrencies. During his speech in Jackson Hole on August 26, Fed Chairman Jerome Powell took a hawkish tone, saying that lowering inflation would “bring pain to households and businesses.”
“These are pretty strong words for a policy maker,” Peccatiello said. “What he means is that the Fed won’t stop until the job is done. The job means inflation is back to 2 percent,” he said. Peccatiello added that the impact of the Fed’s policy on “risky assets” like stocks and crypto could be dire. “[Fed] should keep monetary policy tight,” Powell said. “When the real returns are high, any investment you make becomes less attractive from a valuation point of view,” he said.
“We’re talking about almost 1 percent positive real returns in the US,” Peccatiello said. “[Powell] achieved this goal that gave him credibility,” he said. Peccatiello said Powell would meet his 2 percent inflation target “if he inflicts enough pain on the private sector.” “The bond market is pricing in a reasonable probability of roughly 35 percent that the Fed funds rate will rise to 4 percent.”
Winter unrest begins in Europe
The Fed is trying to tame inflation. Meanwhile, Europe is struggling with the spike in energy prices. Europe’s reference electricity price rose 10 times the ten-year average. Natural gas prices rose. This comes as Russia shuts down the Nord Stream 1 gas pipeline for maintenance. Russia meets 40 percent of the European Union’s natural gas needs. “During the winter, about 7 to 10 percent of [Europe’s] GDP bill comes from electricity, energy and gas,” Peccatiello said.
“This is extremely big. We are talking about a cost as big as a banking crisis in Europe… In the basic case, I think Europe will barely survive the winter at a very expensive price,” he said. He added that Europe will have to change its energy model in the long run, “to make sure they have other energy sources to continue delivering and producing the goods they can export.”
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