Fed, Evergrande and stock markets are putting pressure on Bitcoin

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Last Updated on 6 November 2023 by CryptoTips.eu

The expectation that the Federal Reserve will have to keep interest rates in the United States high for an extended period of time has put pressure on the stock markets this week. As Bitcoin continues to move in tandem with tech markets this year, the price of the largest digital coin dropped below $27,000. Other major crypto coins also fell. The warning that analist ‘Dave The Wave’ sent out earlier this week was correct.

Over in China real estate giant Evergrande filed for bankruptcy.

Advertentie.

Inflation

All throughout 2023, the economy of the West (aka the United States and Europe) revolves around only one thing: how to get inflation to a reasonable (read 2%) level. While successive rate hikes by the Federal Reserve and the ECB in both the US and the EU have caused inflation to fall to a more acceptable level than what we saw at the end of last year, Jerome Powell (head of the Federal Reserve) believes it is important that we reach that sacred 2% level. If that is indeed his goal, interest rates will have to remain high for the foreseeable future.

Bitcoin dropped below $27,000. Ether traded below $1,700 while smaller coins also lost ground.

It’s because the minutes of the last Fed meeting show that there is disagreement among the Federal Reserve Board of Directors. Investors now fear that the long-awaited fall in interest rates (the moment at which the Fed and the ECB will decide to finally let interest rates fall instead of keeping them high) may therefore be a long time coming.

Crypto twitter is filled with panic this morning.

There is also a rumor that SpaceX has by now sold all its Bitcoin.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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