Note This Date: BTC, SHIB, ADA, and DOGE Could Drop Hard!

The cryptocurrency market has been moving down for a while due to pressure from Central Banks. Now, while the 75 basis point rate hike of the Fed was finalized at its November meeting, expectations for a 100 basis point increase were also included in the pricing. According to Reuters, the European Central Bank will also set a precedent, pushing BTC, SHIB, DOGE and ADA down.

Attention on this date

The cryptocurrency market has been in a bearish trend since the beginning of the year due to unfavorable market conditions. That said, the macroeconomic headwinds don’t look likely to subside anytime soon. Despite growing concerns about the soundness of the world financial system, the European Central Bank will raise interest rates by another 75 basis points. The next interest rate will be decided on October 27. A hawkish decision from the EU will negatively affect the cryptocurrency market.

Impact of Central Banks on BTC, SHIB, ADA and DOGE

It is the responsibility of central banks to protect the economy from extraordinary economic events such as inflation and calm. Banks are currently raising interest rates and tightening lending standards to slow inflation. The latest US inflation data came in higher than expected. The Fed is getting even more aggressive to achieve its goal in light of weak data.

Now, both the Fed and the European Central Bank (October 27) want to reduce inflation to 2%. Inflation is currently 10% in the Eurozone and 8.2% in the US. Lawmakers say the Covid epidemic, government spending during the pandemic and the Russia-Ukraine war are to blame for the rising inflation. To achieve this specific goal, the Fed will raise interest rates by 75 basis points for the fifth time in a row. According to experts, the European Central Bank will take a similar stance with the Fed.

Cryptocurrency investors are waiting for the flurry of financial stability to soften the aggression of central banks. According to the IMF, a calm will hit the world economy in 2023. Tesla CEO Elon Musk and Ark CEO Cathie Wood predict deflation for the economy.

How will Falcon decisions affect the cryptocurrency market?

The hawkish attitude of the Central Banks will certainly cause negative pressure. But, As we have reported, Bank of America predicts a valuable stock increase in early 2023. Bank analysts are also expecting a precedent attack on the crypto side as it is highly correlated in classical markets.

In the midst of this, the “Kobeissi Letter” from Twiter, in their current analysis, shared their concerns regarding the upcoming meeting of the FED at which a new rate hike will be announced:

We are now witnessing a belated relief rally in equities. After more than a month of almost straight downward price action, a bounce was necessary. However, as the third-quarter benefits kick in and the next Fed meeting approaches, we’re far from clear. Use the stops and don’t get trapped.

The last Fed rate decision of the year will be announced on November 1-2. The date for the European Central Bank is 27 October.

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