BTC price could drop to $30K, Expert warns

The expert warning comes as the U.S. Federal Reserve's plans to tighten its asset purchasing program, followed by 3 rate hikes in 2022.


BTC price could drop to $30K, Expert warns
Bitcoin crash | Image: Optimisus

Alex Krüger, the founder of Aike Capital, a New York-based asset management firm, warns that Bitcoin (BTC), the largest crypto by market cap may fall to as low as $30,000 if the U.S. inflation data that will be released on Wednesday comes any higher than forecasted.


Reports show that the market foresees the consumer price index (CPI) to increase by 7.1% for the year through December and 0.4% month-over-month.


According to data, this wave emphasizes the reason the U.S. Federal Reserve officials have been implanting for a faster normalization of their monetary policy than expected earlier.


Furthermore, the data released on January 7, says that reinforcing their preparation is a normalizing labor market, including a peak in income and declining unemployment claims.


On Sunday, Alex Krüger tweeted that crypto assets are at the furthest end of the risk curve. Moreover, he added that since they had benefited from the Fed's tax monetary policy, it is enough to say that they would suffer as a short tighter policy shifts money into safer asset classes.