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AssetCrypto shares all the news about crypto currency with you !Bitcoin and Ethereum see red as the Fed pulls out its claws against inflation
Bad times for crypto-assets
While we haven't even had time to celebrate a smooth occurrence of The Merge, Bitcoin (BTC) and Ethereum (ETH) prices are plunging to multi-week lows. It must be said that the aggressiveness of the American Federal Reserve (the Fed) worries the markets, and not only that of cryptocurrencies. Will the US central bank continue for a long time to violently raise its rates?INFLATION, YOU LOSE... RISE IN RATES, YOU ALSO LOSE!
As Nassim Nicholas Taleb would say, central banks around the world have been playing an "economic Disneyland" for too long, with a lot of money printing, especially since the 2008 crisis.Result: galloping inflation, on the verge of becoming uncontrollable and going into hyperinflation. Faced with this, the United States Federal Reserve was forced to raise its key rates unceremoniously.
And many expect it to continue at the same pace this Wednesday, September 21, 2022, as Forbes reports in particular. The Fed is expected to raise its rate another 0.75 basis points. Its interest rates would then drop from 1.75 to 2.5%.
Enough to drive away players from assets qualified as "risky". Like corporate stocks, but especially cryptos... Thus, the price of ether has fallen from 1,600 to less than 1,300 dollars since The Merge arrived on September 15. Same observation at Bitcoin, which after having floated above 20,000 dollars finds itself at a low of several weeks, around 18,500 dollars.
BTC and ETH are gray as the Fed meeting approaches.
Price of Bitcoin against the US dollar (in weekly and 12-hour candles)
All the suspense that awaits us, between now and Wednesday, will be above all whether the Fed will announce an upcoming lull in its rate readings. Otherwise, the crypto market risks continuing to fall, with the flight of capital from risky assets to safe havens (dollar, gold, bonds).
Software Wallets
Unlike traditional class assets that are easier to store and secure through established practices, cryptocurrencies are still learning to walk in all aspects. But that's not to say that they are totally vulnerable, and you will lose your investment in the near future. Far from that, excellent storage solutions, such as software wallets, have emerged in recent times.
Software wallets are computer programs that allow you to store your crypto keys in a single secure location. Furthermore, they encrypt your crypto keys and mask your IP address when transacting with crypto online to keep you safe from hackers and malware. They also enable you to buy and swap your crypto safely and securely while in storage.
In addition, some crypto exchanges also offer hot wallets that help you to secure your keys, but a commercial wallet is always preferred.
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