In the world of cryptocurrency, Bitcoin remains one of the most popular and widely traded assets. Recently, as the Chairman of the US Federal Reserve, Jerome Powell, warned of a potential increase in interest rates, many investors are asking if this could lead to a crash in crypto prices.
In this update, we will dive into the current state of the cryptocurrency market, review the latest trends in Bitcoin prices, and make a prediction as to what the future holds for the leading digital asset.
BTC Could Not Overcome Its Losses & Remain Red After Powell’s Hawkish Speech & Uncertainty Around Silvergate Bank
Bitcoin Price Forecast: A Fundamental Outlook
Bitcoin (BTC), the world’s leading cryptocurrency, has been unable to make any substantial gains and continues to display negative numbers within the $22,000 range. The losses can be attributed to comments made by the Chairman of the US Federal Reserve, Jerome Powell, regarding a possible rise in interest rates.
It is important to note that the crypto market has experienced a downfall following Powell’s words and the associated uncertainty surrounding Silvergate Bank.
This has caused a sense of unease among traders and investors as they try to comprehend the potential impact of Powell’s comments on the market.
Aside from the Fed Chair’s remarks, the uncertainty surrounding Silvergate Bank has also had an effect on the decline of the crypto market.
The tension surrounding the bank has heightened the sense of insecurity among investors, thus leading to a decrease in cryptocurrency prices.
This has impacted other popular cryptocurrencies, such as Ethereum (ETH), Dogecoin (DOGE), Ripple (XRP), and Solana (SOL), which have all experienced losses on the day.
Federal Reserve Chair Warns Of Higher Than Expected Interest Rates
Federal Reserve Chairman Jerome Powell concluded his second and final day of Congressional testimony with a relatively uneventful three-hour hearing in front of the House Financial Services Committee. Unlike Tuesday’s Senate Banking Committee hearing, the markets remained steady throughout the Q&A session, even though stocks plummeted after Powell suggested the possibility of higher interest rate hikes to combat persistent inflation.
On Wednesday, Powell attempted to allay the fears of investors by emphasizing that no decisions had been made regarding steeper rate hikes. He stated, “If — and I stress that no decision has been made on this — 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.”
BTC Nears $20,000 As US Federal Reserve Puts Pressure On Crypto
Bitcoin (BTC) is currently at risk of falling below the $20,000 mark for the first time in two months due to the United States Federal Reserve’s hawkish stance.
The Chairman of the US Federal Reserve, Jerome Powell, has stated that recent economic indicators have come in better than expected, leading to the expectation that the ultimate level of interest rates will be higher than predicted.
This has created market uncertainty and put pressure on cryptocurrencies, such as Bitcoin.
Powell’s remarks significantly impacted the US dollar, which increased to a two-month high on the US Dollar Index (DXY) and consequently contributed to the decrease in BTC prices.
It is important to note that the rising value of the US dollar has made Bitcoin and other cryptocurrencies more expensive for investors holding other currencies, leading to a decrease in demand.
This recent development highlights the volatility of the crypto market. It emphasizes the importance of keeping a close watch on geopolitical developments and economic data that may have a significant effect on the market.
Uncertainty Surrounding Silvergate Bank and its Influence on the Cryptocurrency Market
In addition to Powell’s remarks, the market’s downturn has been further intensified by the uncertainty surrounding Silvergate Bank. The bank is renowned for its strong support for cryptocurrency companies, but rumors suggest it has faced some regulatory issues.
This has caused traders and investors to worry about the bank’s future support for Bitcoin companies.
Bitcoin Price
The current Bitcoin price is $21,700, and the 24-hour trading volume is $22 billion. Bitcoin has declined by over 1.50% in the past 24 hours. Bitcoin is now the market leader, with a live market cap of $420 billion.
In technical analysis, Bitcoin currently has immediate support near the $21,550 level. A breakout of this level has the potential to trigger a bullish bounce-off.
