Satoshi Act Fund CEO and Founder Dennis Porter Thinks Bitcoin Prices Will Go Downvery, very low“. The cryptocurrency market is crashing hard as the dollar continues to show extreme strength. Bitcoin has fallen nearly 6% in the past 24 hours and more than 8% in the past 7 days.
Porter also reveals that many in his inner circle feel that the current economic environment is the worst macroeconomic condition of a lifetime.
Dollar strength sinks bitcoin
The dollar continues to strengthen and has reached a new 20-year high. US 10-year Treasuries also strengthened in anticipation of an aggressive Fed stance. The rising dollar sent the S&P 500 and NASDAQ 100 tumbling. Bitcoin, which is highly correlated to tech stocks and the tech-based NASDAQ, also fell.
The dollar’s recovery showed no signs of slowing down. A Bloomberg article points out that the Fed’s stance could become much more aggressive. It is believed that Fed Chairman Jerome Powell will follow in the footsteps of former Fed Chairman Paul Volcker. The latter probably pushed the US economy into recession by adopting a belligerent attitude towards inflation.
If the Fed continues its quantitative tightening, the dollar may continue to see new highs. In his Jackson Hole speech, Jerome Powell reaffirmed his position of increasing the strength of the dollar to help fight inflation. The Intercontinental Exchange dollar gauge points out that the dollar is still a third lower than in 1985, under the Volcker regime.
A macro expert just told me, “I’ve never seen a worse macro economic outlook in my life”.
Does this mean we have bottomed?
—Dennis Porter (@Dennis_Porter_) September 7, 2022
How low can BTC go?
Experts believe bitcoin’s dominance is currently at support levels. If BTC continues to fall, it could reach extremely low levels. Richard Heart, a major crypto influencer, believes bitcoin will fall to $11,000 before any upward movement.
All eyes are now on the September 13 CPI data release. Favorable CPI data may release downward pressure from the Fed’s hawkish activity on Bitcoin and may lead to a rally in BTC.
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