The CEO and founder of Satoshi Act Fund, Dennis Porter, believes that Bitcoin prices will go “very, very low”. The crypto market is crashing hard as the dollar continues to show extreme strength. Bitcoin has fallen close to 6% in the last 24 hours and over 8% in the last 7 days.
Porter also reveals that many in his circle believe the current economic environment to be the worst macroeconomic condition in a lifetime.
The Dollar Strength Sinks Bitcoin
The dollar continues to rally as it hit a fresh 20-year high. The US 10-year Treasury Bills also strengthened in anticipation of an aggressive stance from the Fed. The dollar’s rally led the S&P 500 and NASDAQ 100 to tumble. Bitcoin, which is strongly correlated to tech stocks and tech-based NASDAQ also plummeted.
The dollar’s rally has also shown no indication of slowing down. A report from Bloomberg highlights that the Fed’s stance may get a lot more aggressive. The belief is that Fed chair Jerome Powell will follow in the footsteps of much-admired ex-Fed chair Paul Volcker. Volcker likely tipped the US economy into a recession through his hawkish stance on inflation.
If the Fed continues its quantitative tightening, the dollar can continue to see renewed heights. In his Jackson Hole speech, Powell reaffirmed his stance to increase the Dollar’s strength to help fight inflation. Intercontinental Exchange’s dollar gauge highlight that dollar is still a third lower than in 1985 during Volcker’s regime.
How Low Can BTC Go
Experts believe that Bitcoin dominance is currently at support levels. If BTC continues to fall, it might go to extreme lows. Richard Heart, a major crypto influencer, believes that Bitcoin will fall to $11,000 before any upward movement.
All eyes are now on the September 13th CPI data release. Favorable CPI data can release downward pressure of the Fed’s hawkish activity on Bitcoin and may lead to a BTC rally.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.