Fed warning pushes Bitcoin below $25k, where’s support?
Last Updated on 6 November 2023 by CryptoTips.eu
As predicted earlier this week, it was not the US inflation rate (which continues to fall as expected) but the speech of Federal Reserve Chairman Jay Powell that will determine the direction of crypto and stock markets. Bitcoin, which needed a pause in no further interest rate hikes to return to profit, received the requested pause, as well as the promise that further rate hikes could not be ruled out. One day later the ECB (European Central Bank) also raised interest rates.
Powell said “skip” and then said “I mean pause.”
— The Wolf Of All Streets (@scottmelker) June 14, 2023
What a slip.
The largest digital coin briefly dipped below $25,000 for the first time in three months but is still up 50% for the year.
Analysts: bottom has been found
“The Fed has left rates unchanged, which was expected by the market given the macroeconomic situation,” Joe DiPasquale, CEO of crypto asset manager BitBull Capital said “The initial move has been toward the downside, since the Fed indicated that this pause is likely not going to last.”
Analysts do think that Bitcoin has now reached its temporary bottom and optimists even believe that the Fed’s interest rate pause will result in lower interest rates if inflation levels continue to fall in the coming months.
Hinged to downside for now. https://t.co/cn9o2PHlvN pic.twitter.com/xItTCyAVmc
— Peter Brandt (@PeterLBrandt) June 14, 2023
Analyst Markus Levin said that “the global macro setup is shifting significantly,” with the “rate-hike pause the clearest indication yet of this shift. Inflation is falling fast. Global central banks are injecting liquidity to stimulate their economies. And now the focus is on growth and whether we’ll actually experience a broad-based and deep recession.”
Levin added that bitcoin and other digital assets have “likely already hit the bottom.”
At the time of writing, Bitcoin is trading at $25,500 and Ethereum at $1,666.
