Crypto Prices Will 'Nuke' If 100 bps Rate Announced at FOMC Meeting
Crypto Chase (@Crypto_Chase, formerly @Chase_NL) has approximately 100,000 followers across Twitter and YouTube and correctly sold BTC at over $56k and ETH above $4k.
His FOMC prediction is for crypto prices to crash in a 'giga nuke' if a 100 bps rate hike is the outcome - which the market predicts has a 16% probability of happening.
If a 75 basis points hike is announced, he expects liquidity to be run in both directions - choppy price action and the usual 'Darth Maul candle' to stop out longs and shorts
before the long term crypto price move is decided by Fed chair Powell's comments.
Trading Tank (@TheTradingTank) posted a longer crypto prices forecast for his 7,700 followers across an eight-tweet thread.
His analysis was that since core CPI and PPI data 'came in hot' and inflation was higher than expected, the stock and crypto markets may have sold off as a reaction to price in a 75 bps rate hike.
Similar to Chase Crypto, he expects a further sell off if a 100 bps hike is announced, potentially to test the lows (for the Bitcoin price, the $17,600 level hit in June) or crash further.
However, he also notes a 75 bps hike could improve sentiment and lead to a mid term crypto price rally - feeling like a 'victory lap' if it is in fact already priced in.