Bitcoin Predictions After 75 Basis Points Increase

The US Federal Reserve (Fed) increased interest rates by 75 basis points. Fed Chairman Jerome Powell's comment, "I don't expect steps of this magnitude to become common," put a deep sigh on the crypto-asset market. Experts made evaluations about the crypto market.

After the Fed’s interest rate announcement, which increased by 75 basis points, crypto leaders, who are experts in their field, evaluated the market; Booby Lee (Founder and CEO of Crypto Storage Provider Ballet Global Inc.) In the “war of leverages” traders are forcing them to leverage their short positions and drive prices down. This may trigger companies that take a position against the world's largest cryptocurrency to face a margin call. I think we will test $20,000 and go to $19 to $18k. There are many companies and investors who have the position to reduce their investments to zero at the level of 20 thousand dollars. Eric Schiffer (CEO of the private equity fund Patriarch Organization) We've seen a short-term crypto bear market rally. This bear market will continue until the Fed decides to relax. I expect this to happen at the end of the third quarter. Max Gokhman (AlphaTraI Investment Advisor) The truth is that novice traders need to be eliminated from the market. We need to see crypto assets evolve into a more mature state, and I think they are in the process of doing so now. Michael Purves (Founder and CEO of Tallbacken Capital) We continue to think that the broad picture of Bitcoin is bearish and perhaps our $15,000 target is not low enough. However, in the short term, we recommend taking profits on short positions. Adrian Przelozny (CEO of the crypto exchange Independent Reserve) There are a lot of Bitcoins committed as collateral that might need to be sold if its price drops to the $15,000 to $20,000 range. But this is a short-term pain. I'm still very optimistic in the long run. Jeffrey Edward Gundlach (CEO, DoubleLine Capital) Parts of the crypto world have exploded and Bitcoin could drop to $10,000. I looked at the charts when the Bitcoin price broke below $30,000 and saw that $20,000 could be reached very quickly, and it did. Katie Stockton (Founder of Fairlead Strategies) There has been a decidedly negative shift in short-term momentum for Bitcoin. A drop below $27,200 increased the risk of the coin falling to another support area, $18,300-19,500. Bitcoin and most other risk assets fell out of favor in this environment.