Bitcoin Price Threatens $19.6K As Ray Dalio Predicts 30% Stock Collapse


Bitcoin (BTC) in violation of local lows on September 16 as the latest downtrend across the crypto intensified.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

There is no rest for BTC revolutions after the merge

info from Cointelegraph Markets Pro And the TradingView It showed BTC/USD approaching $19,600 at the time of writing, with buyers supporting to avoid further declines.

The level remained in place as a floor during the day as the Ethereum merger ended, only for spark wave salethat took ether (ETH) / BTC towards its lowest level in three weeks.

ETH/BTC (Binance) 1 day candlestick chart. Source: TradingView

Amid the gloomy mood, traders and analysts showed little inclination to reassess market expectations.

“I feel confident with the scenario of a rapid pumping to 23K on BTC and 1800 on ETH and a massive dump from there,” Crypto Il Capo Wroterepeated a long term theory:

“Time is enough.”

Warning that the situation “does not look good”, meanwhile, the popular CryptoBullet account has demanded a recovery of the 100-period moving average (MA) to reverse the uptrend on the 4-hour chart.

Fed rate hike will send stocks down – Dalio

Meanwhile, after another day of losses in US stocks, investor Ray Dalio has reached some new bearish conclusions about what the current inflationary climate may mean for markets.

Related: Ethereum Traders Shortened ETH Price by Record Records During Consolidation – 50% Crash in the Future?

In his last blog post, published On September 13, Dalio predicted that the combined damage to the stocks would cost them 30% of their current valuation.

Higher interest rates will have two types of negative effects on asset prices: 1) the present value discount rate and 2) lower income generated by assets due to a weaker economy. We have to look at both,” he explained:

“What is your estimate for these? I estimate that rising rates from where they were to about 4.5 percent will have a negative impact of 20 percent on stock prices (on average, although greater for assets with longer duration and less for assets with shorter duration). ) based on the effect of discounting the present value and about 10 percent of the negative impact of lower income.”

This will lead to a risk across highly correlated crypto markets, so Bitcoin is targeting levels closer to $10,000.

As Cointelegraph reported, this number is currently No stranger to long-term forecasters’ radar.

The Federal Reserve is inclined to raise rates another 75 basis points at next week’s meeting of the Federal Open Market Committee (FOMC), with some market participants expecting up to 100 basis points, according to to data from CME FedWatch.

Federal target rate odds chart. Source: CME Group

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