Many experts predict that Bitcoin prices will go down, including the CEO and founder of Satoshi Act Fund, Dennis Porter. He has indicated that BTC prices can go very low, and one of the most significant precipitating factors is the Dollar which continues to show strength. The assessment by the experts seems to be confirmed, with the BTC values tanking by almost 6% in the past day and over 8% in the last week. Porter also has some eerie warnings for the economy in general. He believes that the current economic environment with soaring inflation and hawkish Fed all points that the current macroeconomic condition is the worst in a lifetime.
The Dollar Strength Is Bitcoin Achilles Heel
The Dollar continues to gain in strength and has hit a 20-year high, and the Dollar is getting stronger in anticipation of an aggressive stance by the Fed. The Fed is taking an aggressive stance and is expected to increase interest rates as a respite to control soaring inflation. The measures have led the S&P 500 and NASDAQ 100 to tumble. Bitcoin, strongly correlated to tech stocks and tech-based NASDAQ, also plummeted.
The Dollar’s surge shows no signs of slackening, and a Bloomberg report predicts that Fed’s stance may get a lot more aggressive. Fed Chair has already said there will be more pain in store for households and businesses, and he will follow the footsteps of much-admired ex-Fed chair Paul Volcker. Volcker is the person who forced the US economy into a recession through his hawkish stance on inflation.
If the Dollar continues in its upward march and Powell reaffirms that he will be pulling out all the plugs to make the Dollar stronger. Therefore, there is more pain in store for the crypto sector, and BTC prices can still tank further in the coming days. All eyes are now on the September CPI data which will decide the quantum of harsh measures by the Fed.