Cryptocurrencies bitcoin and ethereum have collapsed over the past day

The value of the flagship cryptocurrency dropped by 8.16% per day. At the time of writing, bitcoin is trading at $ 18,435. The situation with ethereum is also disappointing, as it fell by 11.11% per day, and the value of ETH is currently $ 1295.

The main reason for the decline in the value of cryptocurrencies is the upcoming meeting of the Federal Reserve System (FRS), which will take place on September 21. According to analysts, the Fed is promoting a tough policy, and this cannot but affect both the traditional stock market and the cryptocurrency market. The Fed plans to announce a 75 basis point (0.75%) rate hike. Another reason was the «hyper-hope» for a bullish rally after the Ethereum merger, but most traders chose to take profit instead, which negatively affected the ETH rate.

Interestingly, despite the flagship cryptocurrency’s fall below $ 19,000, there are analysts who are convinced of further rapid growth of ETH. For example, Bloomberg senior strategist Mike McGlone is confident that in 2025 the price of 1 bitcoin will reach $ 100,000. He believes that with the fall of the real estate and bond markets, this may be one of the worst bear markets of the current generation, but bitcoin will trade like gold and long-term bonds, such as government bonds with a 30-year maturity.

At the same time, McGlone is confident that the current interest rate hiking strategy of the Fed will lead to a recession, and therefore the cryptocurrency market, like the stock markets, will fall even further in the near future.