“I still remain bearish in the short term, as we still need to have more visibility on signs that indicate that inflation is cooling down,” Pablo Jodar of the financial services firm GenTwo told CoinDesk.
He added: “After yesterday’s Alphabet earnings release, futures are already down. I won’t be surprised if bitcoin goes down back to $19,000 in the following days.”
Now what
It’s certainly been an interesting last few weeks for stocks and cryptocurrencies. After September inflation data came in worse than expected and did not show any signs of inflation subsiding, stocks and cryptocurrencies surprisingly moved higher.
Perhaps investors are adapting to the current environment and becoming accustomed to the Fed’s rapid interest rates, but I would also agree with Jodar that investors still need to see clearer signs of inflation peaking. Until there is proof that the pace of inflation is slowing, the Fed will have to stay aggressive.
The only good news is that based on current projections, the Fed could in theory be done with almost all of its rate hikes by the end of the year.
While the near term remains uncertain, I like Bitcoin and Ethereum long-term and still have no interest in the meme token Dogecoin due to its lack of real-world utility and the lack of technical advantages of its network.
This news is republished from another source. You can check the original article here