Early September 2022, McGlone, a Bloomberg analyst, mentioned that there’s a chance that BTC’s performance will surpass that of native stocks, taking into account the rise in interest rates. Nevertheless, till now, McGlone’s suggestion seems to be void as the current trend of Bitcoin doesn’t relate to what he said.
Considering the viewpoint of Bloomberg’s McGlone’s Bullish, BTC and several other Crypto assets are still in the tank. For instance, following the announcement of the Fed, Ether and Bitcoin suffered a 2 per cent drop but shot up again. But, at the moment, both cryptocurrencies have fallen again, with Bitcoin’s trading value currently not up to $19,000.
The Open Market Committee, the Federal Reserve, monitors the supply of funds in the nation to supervise the country’s economy during inflationary periods. Reserve easing and quantitative tightening are means through which the Fed controls the money supply in the country. The interest rate hike drove the Market’s volatility.
The Fed Reserve Predicts 2025 Inflation Fall Rate
In a meeting held by the Fed Open Market on the 22nd of September 2022, the Fed Reserve intended to battle inflation. The Fed hinted that its rate raise to 75 BPs is the first of many to come, as it wants to hike the interest rate to 400 BPs before the year 2022 runs out.
The Consumer Price Index (CPI) showed an 8.3 per cent Year over Year (YoY) inflation in August 2022. However, the Fed Reserve predicted that by 2025, there would be a 2 per cent drop in inflation. The Fed Reserve hinted at its plans to drop inflation by 5.4% and 2.8% by 2022 and 2023, respectively. According to reports, the Fed hiked the standard interest rate of 2022 by up to 4 times. At the moment, the rates are between 2.25 percent and 2.50 per cent.
The World Bank Predicted That The Global Economy Might Experience Recession
The unpalatable financial policies of the world economy might trigger a recession in the global economy, the world bank predicted. The Originator of NorthmanTrader, Svan Henrich, believes that in the next year, the recession will probably be the primary determinant of the interest rate rather than inflation. He also mentioned that the Fed Reserve Chairman, Powell Jerome, imitates Paul Volker, the Reserve’s former chairman.
Svan further gave his opinion to Powell that before attaining the 400 target rate, he should consider pivoting. Powell didn’t say much about the recession since he didn’t know when it would happen or its depth. At the moment, all speculations regarding the recession have been discarded by the Fed. Meanwhile, many people are waiting for the release of September’s Consumer Protection Index. Also, the Fed Open Market plans to hold another meeting on the 2nd of November 2022.