Bitcoin Price Threatens to Hit $19,600 as Ray Dalio Predicts 30% Stock Crash

Bitcoin (BTC) attempted to exceed local lows on September 16 as the latest cryptocurrency downtrend intensified.

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

No relief for BTC bulls after merger

The data from Cointelegraph Markets Pro Y TradingView showed that BTC/USD was nearing $19,600 at the time of writing, with support from buyers preventing a further drop.

The level had remained in place as an intraday low as the Ethereum meltdown (ETH) concluded, just to trigger a salewhich took the ETH/BTC pair to three-week lows.

1663459293 772 Bitcoin Price Threatens to Hit 19600 as Ray Dalio Predicts
1-day candlestick chart of the ETH/BTC pair (Binance). Source: TradingView

Amid the gloomy environment, traders and analysts showed little inclination to reassess their market outlook.

“I feel confident about the scenario of a quick pump to $23,000 for BTC and $1,800 for ETH and a big drop from there,” wroteThe Capo of Cryptoreiterating a long held theory.

“Time will tell.”

Warning that the situation “doesn’t look good”, the popular account CryptoBullet required a recovery from the 100-period moving average (MA) to turn bullish on the 4-hour chart.

Dalio: Fed rate hike will cause stocks to plummet

After another day of losses in US equities, investor Ray Dalio drew further bearish conclusions about what the current inflationary climate would mean for markets.

In the last blog postpublished on September 13, Dalio predicted that the combined damage for the actions would cost them 30% of their current valuation.

“The rise in interest rates will have two types of negative effects on asset prices: 1) the present value discount rate and 2) the decrease in the income produced by the assets due to the weakness of the economy. You have to take both into account.”

“What are the estimates on that? I estimate that a rate hike from where they are to about 4.5 percent will have about a 20 percent negative impact on equity prices (on average, though higher for assets). of longer duration and less for those of shorter duration) based on the discount effect of the present value and a negative impact of about 10 percent due to the decrease in income.”

That would pose a danger in highly correlated cryptocurrency markets, with bitcoin thus targeting levels closer to $10,000.

What reported Cointelegraph, that number is currently no stranger to the radar of long-term forecasts.

The Federal Reserve is leaning towards enacting a further 75 basis point rate hike at next week’s FOMC meeting, with some market participants expecting even 100 basis points.according to data from the CME FedWatch Tool.

1663459293 952 Bitcoin Price Threatens to Hit 19600 as Ray Dalio Predicts
Probabilities chart of the Fed interest rate target. Source: CME Group

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Bitcoin Price Threatens to Hit $19,600 as Ray Dalio Predicts 30% Stock Crash