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Bitcoin Approaches Death Cross as Goldman Foresees 4 Fed Rate Hikes This Year

They call it bitcoin’s “death cross” – a bearish indicator which appears when the 50-day moving average (MA) dips below the 200-day MA.

The ominously-named chart pattern looks set to be confirmed this week amid mounting concerns of faster liquidity withdrawal by the U.S. Federal Reserve (Fed), a bearish development for bitcoin and asset prices, in general.

Goldman Sachs foresees the Fed raising borrowing costs at least four times by the end of 2022 versus the previous prediction of three rate hikes, according to Bloomberg. The investment banking giant also expects the central bank to downsize its balance sheet from July.

Friday’s U.S. labor market report, which showed that unemployment rate dipped to 3.9%, has strengthened the case for the Fed to hike rates concurrently with the end of asset purchases in March. According to the CME Group’s FedWatch Tool, investors were pricing a 73% probability of a 25 basis point rate hike in March, up from 61% last week.

Fears of a hawkish Fed gripped the bitcoin market towards the end of last quarter after the central bank shifted its focus to inflation control from maximum employment. In December, the Fed announced at least three rate hikes by the end of 2022 and an end of the asset purchase program by March.

Read full here https://www.coindesk.com/markets/2022/01/10/bitcoin-approaches-death-cross-as-goldman-foresees-4-fed-rate-hikes-this-year/

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