an Bitcoin fell below its $ 20,000 support Thursdayfollowing a new statement from US Federal Reserve Chairman (Fed) Jerome Powell.
Jerome Powell, weighed in on fighting inflation
Addressing the U.S. Senate on Wednesday, Jerome Powell said he was weighed in on continue the fight against inflation. To that end, the Fed has already raised its interest rates last month, accelerating the downward momentum of cryptocurrency markets.
This time, Jerome Powell has indicated his willingness to adopt more aggressive monetary policies in the face of inflation that would exceed nutrition forecasts. In this perspective, the President of the institution expects a new increase in interest rates of between 1.75% and 2%. He also announced that further measures would continue pending conclusive evidence of reduced inflation in the United States.
Jerome Powell also affirmed in the Senate that the Fed was closely monitoring the cryptocurrency market. He also argued that the observed volatility was in no way attributable to macroeconomic considerations. According to her words, inflation or interest rate recovery would not affect the cryptocurrency market. Jerome Powell, on the other hand, attributed the recently observed movements in crypto prices to the lack of an adequate regulatory framework.
What is the impact on the price of Bitcoin?
The speech of the President of the Fed has a habit of intensifying the cryptocurrency markets. An interest rate hike was announced, and so on the prospect of a crypto asset withdrawal is particularly alarming.
Once again what was feared as a result of a Bitcoin price contraction which exceeded his $ 20,000 support. The price of BTC has indeed fallen to 19,864 dollars. Note that this value is much higher than the bun annual meeting June 18 at $ 17,760.
A The buying pressure was seen to tighten below $ 20,000 and the BTC price broke through support on the other side in the following hours. This “stress test” was therefore relatively good for the BTC which, once again, demonstrated its resilience.
Risk of capital loss.