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Below, 02/02 update.This post was originally published on January 31st
Bitcoin
Bitcoin
apply now Forbes CryptoAsset & Blockchain Advisor Navigating the Latest Bitcoin and Crypto Market Crash
February 2002 Update: After the US Federal Reserve (Fed) hiked interest rates by a quarter of a point, the price of Bitcoin soared and the Federal Funds rate reached a range of 4.5% to 4.75% in 2007. This is the highest level since September. .
Yuya Hasegawa, a cryptocurrency market analyst at Bitbank, said in an emailed comment, “In fact, the Fed’s policy is in flux, and depending on future data, it may suspend interest rate hikes earlier than planned. ‘ said. “However, while state inflation has slowed, as the statement suggests, inflation remains high and ‘remains on the rise,’ Federal Reserve Chairman Jerome Powell said. He pointed out that the Fed needs more evidence to confidently say they’re getting closer to their target: 2%. ”
Bitcoin prices briefly topped $24,000 per bitcoin, a level not seen since August last year, but traders expect the slowdown in rate hikes to continue through 2023, with the Fed more dovish. Fed Chairman Jerome Powell warned, however, that it would be “very premature to declare victory” in the fight against inflation.
“Overall, the market [Federal Reserve interest rate decision] But Bitcoin’s rise remains volatile,” Hasegawa said. Friday’s jobs report may give a boost, but with the recent decline in first-time jobless claims by the week, it may be too optimistic to expect.
Bitcoin’s price surged from under $17,000 at the beginning of the year to around $23,000 per bitcoin.ethereum
ethereum
The $1 trillion cryptocurrency market is now primed for the Federal Reserve’s latest interest rate decision tomorrow, with the Fed expected to raise interest rates to a new target range of 4.5% to 4.75%. It has been. last year.
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Bitcoin Price Surges Heading into New Year, Pushing Ethereum Price and Other Major Coins … [+]
Sophie Rand-Yates, chief equity analyst at Hargreaves Lansdowne, said in an emailed statement that the market is “yielding to the pressure of the Federal Reserve’s upcoming rate hikes.” rice field.
Bitcoin’s price has fallen from six-month highs reached over the weekend, echoed by Ethereum and other major cryptocurrencies.
“Policy makers are expecting a 25 basis point hike in interest rates and the market is pricing that in,” Lund-Yates said. “There will inevitably be a small tremor creeping in as the decision draws near, but it shouldn’t linger.”
Rising hopes that the Federal Reserve (Fed) may turn away from its policy of rapid interest rate hikes continued until January, after economic data showed ferocious inflation had begun to cool. It helped the stock market rise. His series of Fed rate hikes last year were meant to siphon liquidity out of the system and keep inflation in check.
“The market may have gone ahead in favor of the Fed,” said Naumann Shaik, head of financial management at crypto asset manager Wave Financial, in an email.
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Bitcoin Price Crashes Through 2022, Ethereum and … [+]
Fed Chairman Jerome Powell will hold a press conference to reiterate his hawkish stance following the interest rate decision tomorrow at 2pm ET.
“The Fed has already put forward a ‘long term high’ roadmap of moving from a fast pace to a more cautious pace of rate hikes and then locking in the final rate for some time,” Sheikh said. Stated.
“Markets currently focused on recession do not believe the Fed and are pricing in rate cuts from September. Chairman Powell may become more hawkish at press conference and re-tighten financial conditions. The reason for that is that we are seeing a healthy short-term correction in cryptocurrencies and all risky assets.”
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