Max Keiser Turns Bearish on Bitcoin as BTC Price Nears 2-Month Low – Coinpedia Fintech News

  • Bitcoin’s value drops to $29.1K, sparking worry among investors, compounded by Federal Reserve minutes.

  • Bitcoin advocate Max Keiser takes bearish stance due to rising crypto market rates, contrasting with previous bullish predictions.

  • Bitcoin, S&P 500, and gold experience declines as low trading volume affects market sentiment.

In a notable turn of events, Bitcoin (BTC) faced a significant setback as it dropped below a critical support level, causing its value to tumble to $29,100. This unexpected decline has triggered concerns among investors about potential losses in the cryptocurrency market. Adding to the unease, the recent release of the Federal Reserve minutes on August 16 further exacerbated the situation.

This development pushed the cryptocurrency’s price down even further, nearing a two-month low at $28,300.

Testing the Waters

Market observers and experts are closely monitoring the behavior of the 200-day and 200-week simple moving averages (SMAs), crucial indicators for identifying bullish trends. The prevailing sentiment is that these pivotal trend lines are approaching a testing phase. If these trend lines manage to hold firm, it could signal the arrival of a full-fledged bull market.

On the other hand, a breach of these trend lines could potentially indicate the onset of a bear market.

Why is Max Keiser Bearish?

Max Keiser, a prominent proponent of Bitcoin and an advisor to the president of El Salvador, has long been a prominent voice in the cryptocurrency realm. Notably, Keiser had previously made bold predictions about Bitcoin’s future, suggesting that the leading cryptocurrency could surge to a price point between $100,000 and $220,000. However, Keiser’s tone has taken an unexpected turn as he now expresses a bearish outlook.

In a recent tweet, Keiser jolted the crypto community by adopting a bearish stance on Bitcoin’s trajectory. This surprising shift in perspective comes as 10-year U.S. Treasury yields reach levels not witnessed since 2008. Keiser’s change of heart stems primarily from the surge in rates within the crypto market. He posits that this surge poses a potential challenge to Bitcoin’s price stability due to heightened capital flow into higher-yielding investments.

Read More: Crypto Market Bloodbath: Bitcoin and Ether’s Price Slide Triggers $1B in Liquidations

So… Why did the tables turn?

Keiser’s new perspective starkly contrasts with his own optimistic forecasts for Bitcoin’s valuation, leaving his followers perplexed and apprehensive. It’s worth noting that historical data highlights August and September as months characterized by low volatility and an anticipated decline, making the current dip somewhat unsurprising.

Inflation and Interest Rates Weigh Heavy

Amid the ongoing uncertainties surrounding inflation and interest rates in the United States, the Federal Reserve committee underscores that inflation remains elevated at around 2%, despite some recent downward shifts in certain measures. Meanwhile, the CME’s FedWatch tool projects an 86.5% likelihood of the Federal Reserve implementing a 0.25% interest rate hike, with a 13.5% chance of a more substantial 0.5% increase. If realized, this larger increase could mark the highest level recorded since the year 2000.

Bitcoin’s Plunge

In August, Bitcoin witnessed a notable decline of 4.2%, paralleled by a 3.7% drop in the S&P 500 index, which tracks the performance of the top 500 U.S. companies. Furthermore, gold also experienced a decline of 3.98% during this period. These shifts in the market landscape can be attributed, in part, to Bitcoin’s notably low trading volume over the past five years, which has led to diminished investor interest.

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