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DOGE, ADA, BTC Plunge as Nomura Predicts 100-Basis-Point Rate Hike

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Tue, 13/09/2022 - 18:56
DOGE, ADA, BTC Plunge as Nomura Predicts 100-Basis-Point Rate Hike
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The largest cryptocurrencies have extended their losses, with the price of Bitcoin (BTC) slipping to the $20,600 level on the Bitstamp exchange.

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Dogecoin (DOGE), Cardano (ADA), XRP, and other altcoins have been hammered by Bitcoin’s renewed weakness.

As reported by U.Today, cryptocurrencies dropped sharply lower earlier this Tuesday due to hotter-than-expected consumer price index (CPI)   data.

The market believes that the U.S Federal Reserve will become even more committed to monetary tightening.    

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Cardano Founder Talks About "Key Cause" of Market Sell-off, ADA Down 8%
 

Analysts at Nomura Securities now believe that the Fed will go as far as announcing a 100-basis point hike.  "The August CPI report ... suggests a series of upside inflation risks may be materializing," the firm stated. The economists believe that the Fed will then announce two more 50-basis point rate hikes by the end of the year in order to curb inflation.

Fed funds futures are currently pricing in a 28% chance of the jumbo rate hikes. The market appears to be inclided to believe that the central bank will stick to a more moderate pace of monetary tightening, refraining from implementing an extremely big rate hike.

As reported by U.Today, the U.S. central bank went for a 75 basis point hike in July, providing some relief to battered risk assets such as Bitcoin.  

After recovering in July, the price of the largest cryptocurrency dropped by roughly 15% in August.

The recent inflation data has overshadowed the upcoming merge event, with market sentiment being overwhelmingly bearish.

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