Fed warning puts pressure on stocks and crypto, AI adapts end of 2023 price prediction for Bitcoin
Last Updated on 6 November 2023 by CryptoTips.eu
Both stocks in the United States and the crypto market reacted rather negatively to the tone of Federal Reserve Chairman Jay Powell earlier this week. After all, he announced that interest rates could be going up for a longer time than foreseen. The AI model that predicts the price of Bitcoin and Ethereum before the end of the year immediately adjusted its parameters (and therefore its price prediction) to the news.
50 basis points
The US economy is apparently still doing very well. Too good according to Federal Reserve Chairman Jerome Powell who is trying to bring inflation down. Despite all the interest rate hikes, he is not yet looking at a ‘soft landing’ and falling inflation. That is why, according to Mr. Powell, it is quite possible that interest rates, which are already sky-high in the United States, could go a lot higher.
The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated. If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes.
Where investors thought Powell would raise interest rates by one quarter point (0.25%), it may now be two quarters. Investors now think that interest rates in America can go to 6% by the end of this year.
Those ppl who crit @federalreserve for risking a recession b/c of rate hikes know not of what they speak
— Peter Brandt (@PeterLBrandt) March 8, 2023
The Fed should be slammed for not doing 300 BP hike in early 2022
The damage to personal wealth b/c of inflation is far more dangerous than a recession which w/b beneficial LT pic.twitter.com/xEk0y6gZTJ
According to famed analyst Peter Brandt, the Fed is responding far too slowly and should have just immediately raised by 3% at the beginning of the year instead of working with 0.50% increments.
US equities and crypto tumbled in response. Bitcoin is trading at $21,700 at the time of writing.
AI also adapts Bitcoin prediction
As we reported on Monday, there are now also AI (artificial intelligence) models that predict the short and long term price of Bitcoin and Ethereum based on news and historical patterns.
Every time the news changes, AI therefore also adjusts its price prediction. On Monday, the crypto-predicting AI still thought Bitcoin would end the year 2023 at around $39,000.
The Fed news has now dropped that price to $38,000. We will keep you informed of any further progress.
g0d4ather / Depositphotos.com
