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The Crypto space has been taking a hit lately. Bitcoin has been spooking markets across the board for at least a week, and there was also the celsius drama yesterday when investors felt the most pain.

Everyone in the crypto domain believes that things will only grow worse and thus will mark the end of all bull runs. Let’s investigate why with Chico Crypto, who is giving us insight into the upcoming turmoil.

Following the celsius news, everyone is now discussing the inflation-fed FOMC meeting scheduled for this week. What does all this information mean when put together?

Markets under a Bear Grip

In actuality, things don’t appear promising shortly. Following the 8.5% estimate in March, inflation isn’t declining as expected. Looking at actual data, many economists predicted that inflation would begin to retrace and will continue doing so month after month.

Instead, inflation declined from 8.5 to 8.3 percent in April. Still, the reading released late last week destroyed the theory, as inflation began to increase to 8.6 percent for may, proving that it is only temporary. While most economists predict that it will only have a short-term, transient effect, a quicker-than-expected rise in some of those prices is encouraging.

FOMC has started to cause market trepidation

The expectation is that the inflation will be under control in the upcoming two sessions with only a 50 basis point hike. Everyone anticipates Jerome and the Fed becoming more hawkish, representing a rise of 75 basis points. Presently, that is just what the markets have been reflecting.

If it is 75, a significant drop should not be anticipated today. If they only do a 50, this is already priced in. They begin to retrace and turn bullish.

Why are the Experts Bullish on BTC’s Future? 

The Youtuber claims that the bull market won’t start until the Fed and other central bankers across the world change their strategies, which at the very least means stopping rate increases and maintaining the exact size of their balance sheets. To curb the inflation that will continue soon, the FED and other central banks are currently in favor of shrinking their balance sheets and boosting interest rates.