'FED ​​Hammer' Will Drive BTC and ETH Prices Down Further - Bloomberg Analyst

With the merger resulting in a "buy the rumour, sell the event", Mike McGlone thinks ETH could drop to "1 $000, or even go a little lower" given how hawkish the Fed has been.

The US Federal Reserve's inflation "hammer" is poised to drive Bitcoin (BTC) and Ether (ETH) prices down even further, before returning to new all-time highs in 2025, according to Bloomberg analyst Mike McGlone.

Ahead of the Fed's latest interest rate hike to be announced this week, the market is expecting a minimum increase of 75 basis points, but some fear it could reach 100 basis points, which would represent the largest rate hike in 40 years.

Speaking to financial news agency Kitco News on Saturday, McGlone, senior commodities strategist at Bloomberg Intelligence, suggested that further market carnage is in store for BTC, ETH and the crypto sector. broader cryptography as Fed actions will continue to dampen investor sentiment:

“We have to look to the macro big picture and what has pressured cryptos this year and that is the hammer of the Fed.”

The price of BTC has fallen 13.4% in the past seven days to around $19,350 at the time of writing, while ETH has fallen 20.7% in this week. period to reach approximately $1,350.

The 20% drop in ETH in particular has been the subject of discussion, as the price of the asset has fallen since the highly anticipated and long-awaited merger on September 15.

With the major network upgrade, which essentially translates into a "buy the rumour, sell the news...