Bitcoin 'nuke' warning as Fed rate hike decision looms — Dollar index hits 20-year high - Cointelegraph
Polls suggest that the Fed is likely to raise rates by 75 basis points as Bitcoin price clings to $19,000.
21's Federal Open Market Committee's interest rate decision.
The Federal Reserve is poised to discuss how far it could raise its benchmark lending rates to curb record inflation.central bank to hike rates by 75 or 100 basis points (bps).
Independent market analyst PostyXBT argues that a 100 bps rate can "nuke" Bitcoin below its current technical support of $18,800.He also suggests that BTC has a good chance of recovery if the rate hike turns out to be lower than expected, or 50 bps.
These speculations echo general rate hike expectations. John Kicklighter, the chief strategist at DailyFX, notes that a 50 bps rate hike would be bullish for the U.S.Nonetheless, a 100 bps rate hike would be extremely bearish for the S&P 500.From a technical perspective, Bitcoin could drop to $14,000 in 2022 if a drop below its current support level of around $18,800 triggers a "head-and-shoulders" breakdown.