Bitcoin
Bitcoin
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Bitcoin’s price has nearly doubled since the start of 2024, but has lost momentum in recent months as traders panic over the Federal Reserve’s monetary policy plans.
As the Fed has warned of a US dollar crisis that risks escalating into a “total meltdown”, Goldman Sachs analysts have warned that this week’s closely watched jobs figures could trigger a stock market crash – while legendary bitcoin trader Arthur Hayes has admitted his previous bitcoin price prediction was wrong.
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Federal Reserve Chairman Jerome Powell said he was closely watching jobs data, highlighting bitcoin … (+)
“A market correction could start to gain momentum if payrolls are weak on Friday,” Scott Rubner, managing director of global markets and tactical specialist at Goldman Sachs, wrote in a note to clients seen by Bloomberg.
Friday’s jobs report, which Fed Chairman Jerome Powell said last month would inform the September interest rate decision, is expected to show an acceleration in hiring and wage growth in August.
The Fed is now expected to begin a rate-cutting cycle at its two-day policy meeting that begins on September 17. Labor market data and comments from a Federal Reserve official yesterday strengthened the case for lowering interest rates, a source familiar with the matter said. Reuters.
Bitcoin, cryptocurrency and stock market traders are bracing for hints that the Fed will need to adjust its interest rate cut plans this month, as well as signs that the strong U.S. economic performance so far this year has stalled.
Rubner pointed out that September is a historically bearish period for stocks, with bitcoin’s price also often struggling throughout the month, though “the November election becomes a clearing event for risk assets,” Rubner wrote, potentially setting up bitcoin’s price for a post-U.S. election rally regardless of whether former U.S. President Donald Trump or Vice President Kamala Harris takes the White House.
Meanwhile, bitcoin’s weak price performance over the summer forced BitMex co-founder and crypto trader Arthur Hayes to reverse his short-term bitcoin price forecast.
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The price of bitcoin has fallen from its all-time high of more than $70,000 per bitcoin set earlier this year. … (+)
“I have changed my mind, but it does not affect my positioning at all,” Hayes, who launched a family office called Maelstrom after leaving crypto derivatives pioneer BitMex, wrote in a blog post.
Hayes had predicted that a new surge in bitcoin’s price would begin in September, as the Federal Reserve, the U.S. Treasury and China all opened their liquidity taps.
“I expect intervention to begin in late September,” Hayes wrote. “Until then, bitcoin will at best hover around these levels and at worst slowly decline toward $50,000.”
Hayes’ new bitcoin price prediction mirrors a bearish warning from Bitfinex analysts this week who said they could see bitcoin’s price fall as low as $40,000 in the near term.
