‘Something’s Got To Give’ — Traders Brace For Fed Bombshell As The S&P 500, Dow And Nasdaq Stock Markets Return To Record Highs And ‘Fear’ Grips The Bitcoin Price

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by Forbes
2024-10-10

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‘Something’s Got To Give’ — Traders Brace For Fed Bombshell As The S&P 500, Dow And Nasdaq Stock Markets Return To Record Highs And ‘Fear’ Grips The Bitcoin Price

Bitcoin Bitcoin , a leading stock market indicator that's closely watched for signs of stock market corrections, has fallen back this week despite JPMorgan analysts tipping the bitcoin price for a $7.5 trillion earthquake.

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The bitcoin price, which has doubled over the last year amid fears fanned by Elon Musk that the U.S. could collapse into bankruptcy, has crashed back toward $60,000 per bitcoin after touching $70,000 over the summer.

Now, as "crazy" Federal Reserve predictions push the S&P 500, the Dow and the Nasdaq stock market indices back to their record highs, analysts are warning "something's got to give" as bitcoin price sentiment plummets into "fear" territory.

Sign up now for the free CryptoCodex -- A daily five-minute newsletter for traders, investors and the crypto-curious that will get you up to date and keep you ahead of the bitcoin and crypto market bull run

ForbesJPMorgan Has Quietly Tipped Bitcoin For A $7.5 Trillion Donald Trump And Federal Reserve Price EarthquakeBy Billy Bambrough

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Following Federal Reserve chair Jerome Powell announcing a 50 basis point interest rate cut last month, meeting minutes have shown officials were at odds over decision.

Traders could be left scrambling if consumer price index (CPI) due at 8:30am on Thursday misses the steady 3.2% year-on-year reading expected by a Reuters poll of economists.

"Something's got to give, and both stocks and bonds could be vulnerable if expectations are disappointed," Lisa Shalett, Morgan Stanley Wealth Management's chief investment officer, warned in a Monday note to clients seen by Fortune, pointing to the market still pricing in Federal Reserve interest rate cuts usually seen in recessions.

Markets are now pricing in a more than 80% chance of a 25 basis point cut next month, the CME FedWatch tool showed, after the hot U.S. jobs report last week torpedoed expectations of a second 0.5% cut.

"I am getting increasingly queasy about the fact that the equity market keeps on pricing in a soft landing," JPMorgan Asset Management's David Kelly told Business Insider, warning investors "should dial back" exposure to risk assets such as bitcoin.

Last month, Mark Spitznagel, founder and chief investment officer of Universa Investments, warned a broad market crash is about to hit gold, stocks and the bitcoin price.

Sign up now for CryptoCodex -- A free, daily newsletter for the crypto-curious

ForbesTesla Billionaire Elon Musk Issues $35 Trillion U.S. 'Bankruptcy' Warning -- Predicted To Trigger A Bitcoin Price BoomBy Billy Bambrough

"Gold is going to go down, cryptocurrencies will go down along with risk assets," Spitznagel told Bloomberg, putting the stock market, bitcoin and gold in "black swan territory" -- referring to sudden, unexpected shocks that can wipe out traders.

Bitcoin price correlation to stock markets has increased in recent months, with data from The Block showing bitcoin is trading in sync with the S&P 500 and the Nasdaq indices.

The bitcoin price has fallen back from its recent highs as traders scale back bets on Federal Reserve interest rate cuts and huge stimulus measures out of China fall short of market expectations.

"Crypto sentiment has moved back into the fear zone," Alex Kuptsikevich, FxPro senior market analyst, wrote in an emailed note, pointing to the closely-watched bitcoin fear and greed index that has dropped sharply this week.

"Volatility risks for the financial market will revolve around the monthly U.S. inflation report in case it deviates from expectations. For bitcoin, this is enough to both break support and start a new rally."

Important Information: This communication is marketing material. The views and opinions contained herein are those of the author(s) on this page, and may not necessarily represent views expressed or reflected in other Exclusive Capital communications, strategies or funds. This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument.

Read our detailed Marketing Communication Disclaimer

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‘Something’s Got To Give’ — Traders Brace For Fed Bombshell As The S&P 500, Dow And Nasdaq Stock Markets Return To Record Highs And ‘Fear’ Grips The Bitcoin Price

Avatar photo

by Forbes
2024-10-10

See all articles
‘Something’s Got To Give’ — Traders Brace For Fed Bombshell As The S&P 500, Dow And Nasdaq Stock Markets Return To Record Highs And ‘Fear’ Grips The Bitcoin Price

Bitcoin Bitcoin , a leading stock market indicator that's closely watched for signs of stock market corrections, has fallen back this week despite JPMorgan analysts tipping the bitcoin price for a $7.5 trillion earthquake.

Unlock over $3,000 in perks including unparalleled access to a community of top Web3 entrepreneurs, creators, and investors, providing you with premium networking, priority access to global events, Free access to Forbes.com and our Forbes CryptoAsset & Blockchain Advisor newsletter. Apply now!

The bitcoin price, which has doubled over the last year amid fears fanned by Elon Musk that the U.S. could collapse into bankruptcy, has crashed back toward $60,000 per bitcoin after touching $70,000 over the summer.

Now, as "crazy" Federal Reserve predictions push the S&P 500, the Dow and the Nasdaq stock market indices back to their record highs, analysts are warning "something's got to give" as bitcoin price sentiment plummets into "fear" territory.

Sign up now for the free CryptoCodex -- A daily five-minute newsletter for traders, investors and the crypto-curious that will get you up to date and keep you ahead of the bitcoin and crypto market bull run

ForbesJPMorgan Has Quietly Tipped Bitcoin For A $7.5 Trillion Donald Trump And Federal Reserve Price EarthquakeBy Billy Bambrough

MORE FOR YOU

Hurricane Milton Live Updates: More Than 3 Million Homes Without Power As Storm Moves Past Florida East Coast

The 153 Best Amazon Prime Day Deals You Can Still Shop

Stephen's 'Love Is Blind' Cheating Scandal Explained -- Here's How Monica Found The Texts

Following Federal Reserve chair Jerome Powell announcing a 50 basis point interest rate cut last month, meeting minutes have shown officials were at odds over decision.

Traders could be left scrambling if consumer price index (CPI) due at 8:30am on Thursday misses the steady 3.2% year-on-year reading expected by a Reuters poll of economists.

"Something's got to give, and both stocks and bonds could be vulnerable if expectations are disappointed," Lisa Shalett, Morgan Stanley Wealth Management's chief investment officer, warned in a Monday note to clients seen by Fortune, pointing to the market still pricing in Federal Reserve interest rate cuts usually seen in recessions.

Markets are now pricing in a more than 80% chance of a 25 basis point cut next month, the CME FedWatch tool showed, after the hot U.S. jobs report last week torpedoed expectations of a second 0.5% cut.

"I am getting increasingly queasy about the fact that the equity market keeps on pricing in a soft landing," JPMorgan Asset Management's David Kelly told Business Insider, warning investors "should dial back" exposure to risk assets such as bitcoin.

Last month, Mark Spitznagel, founder and chief investment officer of Universa Investments, warned a broad market crash is about to hit gold, stocks and the bitcoin price.

Sign up now for CryptoCodex -- A free, daily newsletter for the crypto-curious

ForbesTesla Billionaire Elon Musk Issues $35 Trillion U.S. 'Bankruptcy' Warning -- Predicted To Trigger A Bitcoin Price BoomBy Billy Bambrough

"Gold is going to go down, cryptocurrencies will go down along with risk assets," Spitznagel told Bloomberg, putting the stock market, bitcoin and gold in "black swan territory" -- referring to sudden, unexpected shocks that can wipe out traders.

Bitcoin price correlation to stock markets has increased in recent months, with data from The Block showing bitcoin is trading in sync with the S&P 500 and the Nasdaq indices.

The bitcoin price has fallen back from its recent highs as traders scale back bets on Federal Reserve interest rate cuts and huge stimulus measures out of China fall short of market expectations.

"Crypto sentiment has moved back into the fear zone," Alex Kuptsikevich, FxPro senior market analyst, wrote in an emailed note, pointing to the closely-watched bitcoin fear and greed index that has dropped sharply this week.

"Volatility risks for the financial market will revolve around the monthly U.S. inflation report in case it deviates from expectations. For bitcoin, this is enough to both break support and start a new rally."

Important Information: This communication is marketing material. The views and opinions contained herein are those of the author(s) on this page, and may not necessarily represent views expressed or reflected in other Exclusive Capital communications, strategies or funds. This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument.

Read our detailed Marketing Communication Disclaimer

SHARE