– The bitcoin price has dropped under $19,000 per bitcoin, exacerbating fears it could fall under its 2022 lows if a September so-called black swan scenario plays out.
– The ethereum price has also crashed back following the successful first step in its long-awaited and much-hyped merge upgrade, dragging down the price of top ten coins BNB BNB , XRP XRP , solana, cardano and dogecoin and plunging the combined crypto market under $1 trillion.
– Now, as the Federal Reserve’s hawkish stance boosts the U.S. dollar ahead of what some expect to be a “great pause,” traders are braced for the European Central Bank (ECB) to follow the Fed in hiking interest rates on Thursday as well as the latest U.S. inflation data next week.
– It’s thought the ECB could vote for a rate hike of 75 basis points when its governing council meets on Thursday as it battles to drive down eurozone inflation that hit almost 10% in August.
– Meanwhile, U.S. Federal Reserve officials and traders are closely watching next week’s consumer price inflation (CPI) data that will show whether the Fed’s earlier interest rate hikes have further slowed price rises. Markets are currently pricing in a 75% chance of a third consecutive Fed interest rate hike in September.