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Go With the FED, Why Bitcoin Could Benefit From Interest Rate Hikes in 2022

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Bitcoin is close of ending its first week of the year in the red, as the crypto market took another blow and sits at critical support. The benchmark crypto records a 7.3% loss in 24 hours, trading at $43,000 after coming back from the lows near $42,000.

Related Reading | U.S. Mining Company Marathon Now Holds 8,133 BTC. And They’re Not Selling It

BTC on a downtrend in the 4-hour chart. Source: BTCUSD Tradingview

Bitcoin did a wick into its current levels on December 3rd. Therefore, some traders were expecting this are to be fill before the bulls could take another swing at new highs. In the short term, BTC’s price is yet to stabilize and could dipped further into the high $30,000s and $40,000.

The macro-economic situation seems to have acted as a triggered for the current price action, as the U.S. Federal Reserve Jerome Powell made statements regarding the latest CPI metrics and a potential start of tapering. This could prove the only effective solution to prevent more inflation in the country.

According to FOMC minutes @federalreserve is contemplating earlier rate hikes and balance sheet shrinkage. This will be happening into a sharp slowdown in GDP. Two words come to mind: Good luck

— Joseph A. LaVorgna (@Lavorgnanomics) January 6, 2022

Sitting at a 40-year record, inflation could continue to rise which will led to a spike in interest rates and a liquidity reduction in the markets. With a more hawkish FED, this possibility is quickly becoming a reality felt across the global markets as Gold, Bitcoin, and the S&P 500 moved to the downside.

Source: Santiment via Twitter

An increase in interest rates could put some pressure on the price of Bitcoin, but Senior Commodity Strategist for Bloomberg Intelligence Mike McGlone believes the benchmark crypto could come on top of the current situation. In a recent report, the expert wrote:

the first born (cryptocurrency) is rapidly transitioning toward becoming the world’s digital reserve asset (…). The “don’t fight the Fed” mantra may already be pressuring the broad crypto market, with companionship from peaking commodities.

In the short term, the $30,000 level that worked as support for Bitcoin in 2021 could still prove solid in 2022, but McGlone believes it’s “unlikely” that BTC will revisit it.

Bitcoin To Outperform Global Market In 2022?

The expects has had a bullish stance for Bitcoin and Ethereum for the past years and maintains his conviction for the coming months. An overall risk-off economic environment could trigger more downside pressure, but the $100,000 price mark remains intact.

This global decline in the markets would be the FED’s biggest ally to fight inflation. However, the benchmark crypto could experience a “win-win situation” as it benefits from less total liquidity as opposed to the stock market which seems “overextend above its 60-month moving average in over two decades”. McGlone added:

Stretched markets have become common, but commodities and Bitcoin appear to be early reversion leaders. It’s a question of bull-market duration, and we see the benchmark crypto coming out ahead.

Related Reading | President Bukele Predicts BTC At $100k With Hope That More Countries Adopt It As Legal Tender

Source: Mike McGlone, Bloomberg Intelligence

Source: newsbtc.com

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If You’re Selling Nvidia Stock Because of Arm Deal Developments, Jim Cramer Thinks ‘You’re a Fool’

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Who is selling NVIDIA Corporation (NASDAQ: NVDA) with the stock already down more than 20% this month? That’s the question Jim Cramer pondered Tuesday when he analyzed the semiconductor stock on CNBC’s “Mad Dash” segment. 

What Happened: Nvidia continued on its downward trajectory Tuesday morning after a Bloomberg report suggested the company is “quietly” preparing to abandon its purchase of British chipmaker Arm Ltd. from SoftBank Group.

According to the report, Nvidia told its partners it doesn’t expect the transaction to close, …

Full story available on Benzinga.com

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Big Data Platform Market Outlook 2022 to 2031 – Microsoft, Google, Aws, Ibm the Oxford Spokesman

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Big Data Platform Market Outlook 2022 to 2031 – Microsoft, Google, Aws, Ibm The Oxford Spokesman The Oxford Spokesman

Original Source: oxfordspokesman.com

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Nvidia Quietly Looks to Dump Its Arm Ambitions

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NVIDIA Corp (NASDAQ: NVDA) is quietly preparing to abandon its purchase of Arm Ltd from SoftBank Group (OTC: SFTBY) (OTC: SFTBF) on bleak prospects of winning approval for the $40 billion chip deal, Bloomberg reports.
Nvidia expressed pessimism to its partners regarding the …

Full story available on Benzinga.com

Source Here: benzinga.com

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