{"id":6809,"date":"2022-08-31T17:42:14","date_gmt":"2022-08-31T17:42:14","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=6809"},"modified":"2022-08-31T17:42:15","modified_gmt":"2022-08-31T17:42:15","slug":"bitcoin-price-clings-to-20k-as-analyst-says-fed-buried-soft-landing","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=6809","title":{"rendered":"Bitcoin price clings to $20K as analyst says Fed \u2018buried\u2019 soft landing"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>Bitcoin (BTC) fluctuated around the key $20,000 mark into Aug. 31 as the outlook on United States inflation darkened.<\/p>\n<p>Data from Cointelegraph Markets Pro and TradingView showed BTC\/USD again dipping below the last halving cycle\u2019s top overnight, only to regain lost ground to circle $20,300 on the day.<\/p>\n<p>The rangebound moves accompanied modest recoveries for U.S. stocks, with the S&amp;P 500 and Nasdaq Composite Index up 0.15% and 0.6% within the first hour\u2019s trading, respectively.<\/p>\n<p>Concerns over the Federal Reserve\u2019s plans on tackling inflation after last week\u2019s gloomy speech by Chair Jerome Powell nonetheless lingered.<\/p>\n<p>Despite Powell\u2019s earlier rhetoric, Diane Swonk, chief economist at KPMG, told mainstream media that the entire concept of a \u201csoft landing\u201d for the U.S. economy was now shelved.<\/p>\n<p>Powell\u2019s speech had in fact \u201cburied the concept of a soft landing,\u201d she explained to Bloomberg, and showed that the Fed instead planned to keep growth in check to \u201cgrind inflation down.\u201d<\/p>\n<p>\u201cIt is a torturous process but less torturous and less painful than an abrupt recession,\u201d Swonk added.<\/p>\n<p>With the mood thus firmly conservative on risk assets, attention likewise remained on the strength of the dollar as it continued to circle twenty-year highs.<\/p>\n<p>\u201cFor risk-on assets, including Bitcoin, it&#8217;s essential to have a stable Dollar or a weak Dollar, as upwards pressure can be expected on the markets,\u201d Micha\u00ebl van de Poppe, CEO of trading firm Eight Global, told Twitter followers. <\/p>\n<p>\u201cThe coming month is going to be important for the $DXY. And this potential bearish divergence could be the first signal.\u201d<em>U.S. dollar index (DXY) 1-hour candle chart. Source: TradingView<\/em><\/p>\n<h2>Markets &#8220;at the craps table&#8221; over Fed rate hike<\/h2>\n<p>September, traditionally a \u201cred\u201d candle month for Bitcoin, also promised an essential Fed decision on key rate hikes, along with August Non-Farm Payrolls (NFP) and Consumer Price Index (CPI) inflation data.<\/p>\n<p><strong><em>Related:\u00a0Bitcoin mining has never been more competitive even as BTC loses 13% in August<\/em><\/strong><\/p>\n<p>Expectations favored a 75-basis-point hike echoing July, CME Group\u2019s FedWatch Tool showed on the day.<\/p>\n<p>\u201cInstead of looking to the broader rate path, or the terminal rate, markets are back to trading the 21 Sep FOMC odds \u2013 whether they will hike 50bp or 75bp,\u201d trading firm QCP Capital told Telegram channel subscribers in its latest market update.<\/p>\n<p>\u201cWorse still, Powell has effectively handed this policy decision to the 2 Sep NFP and the 13 Sep CPI \u2014 which basically means investors are now all at the craps table, betting on over or under.\u201d<\/p>\n<p>TAdditional impetus for a larger rate hike, QCP added, could be due to the longer-than-normal gap between July\u2019s revision and September thanks to the August lull.<\/p>\n<p>Normally, rate hike decisions are taken on a monthly basis.<\/p>\n<p><em>Fed target rate probabilities chart. Source: CME Group<\/em><\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/bitcoin-price-clings-to-20k-as-analyst-says-fed-buried-soft-landing\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin (BTC) fluctuated around the key $20,000 mark into Aug. 31 as the outlook on United States inflation darkened. Data from Cointelegraph Markets Pro and TradingView showed BTC\/USD again dipping below the last halving cycle\u2019s top overnight, only to regain lost ground to circle $20,300 on the day. The rangebound moves accompanied modest recoveries for [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6810,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-6809","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/6809","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6809"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/6809\/revisions"}],"predecessor-version":[{"id":6811,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/6809\/revisions\/6811"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/6810"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6809"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6809"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6809"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}