{"id":8245,"date":"2025-08-19T17:43:04","date_gmt":"2025-08-19T17:43:04","guid":{"rendered":"https:\/\/bitunikey.com\/news\/bitcoin-and-altcoins-may-crash-as-top-trader-issues-fed-warning\/"},"modified":"2025-08-19T17:43:15","modified_gmt":"2025-08-19T17:43:15","slug":"bitcoin-and-altcoins-may-crash-as-top-trader-issues-fed-warning","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/bitcoin-and-altcoins-may-crash-as-top-trader-issues-fed-warning\/","title":{"rendered":"Bitcoin and altcoins may crash as top trader issues Fed warning"},"content":{"rendered":"<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">Bitcoin and altcoin prices could be at risk of further downside as a top trader warns that the Federal Reserve may be about to err on monetary policy.\u00a0<\/p>\n<div id=\"cn-block-summary-block_f6c53c33a997fe47f6da702952394512\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>Bitcoin and altcoin prices may crash as a top trader warns on the Fed.<\/li>\n<li>He believes that the Fed should not cut interest rates in September.\u00a0<\/li>\n<li>A Fed cut delay may affect Bitcoin, altcoins, and the stock market.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>Bitcoin (BTC) price crashed to $113,000 today, Aug. 19, its lowest level in over a week, and 8.60% from its highest point this year. Other altcoins, including popular names like Ethereum (ETH), Solana (SOL), and Sui (SUI), also plunged.<\/p>\n<h2 class=\"wp-block-heading\">Top trader warns about Fed cuts<\/h2>\n<p>One reason why Bitcoin and altcoins surged recently was the rising odds that the Federal Reserve would cut interest rates. Polymarket odds have remained above 71%, while the <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.cmegroup.com\/markets\/interest-rates\/cme-fedwatch-tool.html\" target=\"_blank\">CME FedWatch<\/a> tool remains at 85%.\u00a0\u00a0<\/p>\n<p>Odds of a Fed cut rose after the U.S. published weak nonfarm payrolls data earlier this month. The report showed that the nonfarm payrolls increased by just 73,000 in July, while the unemployment rate rose to 4.2%.<\/p>\n<p>These odds then jumped after the headline consumer price index data remained unchanged at 2.7% in July. Wall Street analysts were expecting the report to show that the consumer price index jumped to 2.8% during the month. The core producer price index soared to 3.6% in July.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<p>Still, Sven Henrich, a popular trader, has warned that the Fed is about to err by cutting interest rates. He pointed to core inflation, which has been rising, reaching 3.1% in July. He also expects that the figure will continue rising as the tariff effects start to manifest.<\/p>\n<p>Henrich\u2019s statement that the Fed should not cut rates came a few days before Jerome Powell delivers his statement at the annual Jackson Hole Symposium in Wyoming.\u00a0<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Covid aside, core inflation is at a higher level than at any time in the past 25 years. And it&#8217;s ticking up and tariff effects are yet to fully manifest.<br \/>Last time I checked the Fed&#8217;s stated inflation target is still 2%.<br \/>Based on data they shouldn&#8217;t cut. <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/t.co\/QB69rh8U07\" target=\"_blank\">pic.twitter.com\/QB69rh8U07<\/a><\/p>\n<p>\u2014 Sven Henrich (@NorthmanTrader) <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/twitter.com\/NorthmanTrader\/status\/1957420172353962375?ref_src=twsrc%5Etfw\" target=\"_blank\">August 18, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>In previous statements, Powell has maintained that the Fed would remain data-dependent when determining when to cut rates.<\/p>\n<p>Recent data shows that the U.S. could be in stagflation, which is characterized by high inflation and weak economic growth, meaning that the Fed will need to choose sides.<\/p>\n<p>It may opt to cut rates to boost the economy and risk high inflation, or maintain high rates and risk a recession. In a recent <a rel=\"nofollow\" target=\"_blank\" href=\"http:\/\/%E2%80%8B%E2%80%8Bhttps:\/\/x.com\/moneymoverscnbc\/status\/1957475876649529557\" target=\"_blank\">statement<\/a>, Moody\u2019s Mark Zandi warned that recession risks were high, arguing that some key sectors were already in one.<\/p>\n<h2 class=\"wp-block-heading\">Bitcoin price risky pattern points to a crash<\/h2>\n<figure class=\"wp-block-image size-full\"><figcaption class=\"wp-element-caption\">BTC price chart | Source: crypto.news<\/figcaption><\/figure>\n<p>The weekly chart shows that Bitcoin\u2019s price could be on the cusp of a sell-off that could impact altcoins. It has formed a giant rising wedge pattern whose two lines are about to converge. A bearish breakout happens when this convergence is about to occur.<\/p>\n<p>Bitcoin\u2019s price has also formed a bearish divergence pattern as the Relative Strength Index and the MACD have continued falling. If this happens, the coin may crash to below $100,000. Such a move would lead to more downside among altcoins.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin and altcoin prices could be at risk of further downside as a top trader warns that the Federal Reserve may be about to err on monetary policy.\u00a0 Summary Bitcoin&hellip;<\/p>\n","protected":false},"author":1,"featured_media":8246,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-8245","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/8245","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=8245"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/8245\/revisions"}],"predecessor-version":[{"id":8247,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/8245\/revisions\/8247"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/8246"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=8245"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=8245"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=8245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}