Crypto Braces For Another Crash As Fed Declines ‘Soft Landing’

The Federal Reserve maintains its hawkish position to curb inflation. August’s consumer price index showed worse than expected inflation. The Fed reaffirmed its commitment to rein in inflation by moving forward with a massive 75 basis point hike. More importantly, Fed Chairman Jerome Powell appeared to walk away from his past comments about a soft landing.

The crypto community is preparing for another crash as prices continue to fall with now the low. Ethereum fell below $1.3,000 while Bitcoin is hovering between $18,000 and $19,000. Over the past 7 days, most altcoins have been trading in the red.

Is a soft landing possible

The Fed moved forward with another 75 basis point hike. More importantly, the Fed is unlikely to pivot any time soon. Even bull market players, like Marko Kolanovic, are expecting a mega 100 basis point rally before the end of the year.

The Fed wants to bring the level of inflation down to less than 2%. Even the Fed’s prediction reveals that it will take until 2025 to achieve this goal. Top macroeconomics expert @MacroAlf points out on Twitter that the world’s five largest economies are experiencing the fastest slowdown in credit creation. He doesn’t believe a soft landing is likely at all.

Bloomberg TV’s Lisa Abramowicz points out that Fed Powell chair deviates from its prediction of a soft landing. Powell believes that stable prices are the fundamentals of a functioning economy. Mutual trading head Hindsight says it’s the worst FOMC ever. He explains that he questions the whole idea of ​​a soft landing.

Is a recession possible?

The likelihood of a recession is increasing day by day as the Fed maintains its hawkish stance. The World Bank has already issued a recession warning as early as next year. The United States has already experienced two consecutive quarters of negative growth. Experts believe that it is extremely likely that a third quarter of negative growth will be revealed.

Nidhish is a technology enthusiast, whose goal is to find elegant technical solutions to solve some of society’s biggest problems. He is a firm believer in decentralization and wants to work towards the widespread adoption of Blockchain. He is also passionate about almost every popular sport and likes to converse on a wide variety of topics.

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.

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