© Reuters
Investing.com – The has managed to recover from its recent decline following the . As this event approaches, indications that FOMC members may be heading for an interest rate hike greater than the 0.25% of the last meeting have multiplied.
St. Louis Fed President James Bullard has warned that more needs to be done to avoid a scenario like the 1970s, when the fight against the US lasted 15 years and had to be raised until at 12 percent.
The minutes, however, revealed that the majority of voting members believed increases of 25 basis points were sufficient, prompting a positive reaction from the markets.
Bank for International Settlements (BIS) Director Augustin Carstens, however, said that fiat currencies have already won the battle against cryptocurrencies. According to him, it is in the nature of things, because technology can never replace a trustworthy monetary system.
Galaxy Digital Holdings CEO Mike Novogratz disagreed with the claim and tweeted that “Carstens holds a stubborn opinion that doesn’t match the facts.” He justifies this statement by the fact that many fiat currencies have lost more than 50% of their value in the last ten years, while bitcoin and have risen. Regarding the trust mentioned, he explains that 200 million people use BTC without to have the concerns expressed by Carstens.
Novogratz also touched on the fact that bitcoin may still hit $30,000 by the end of March. Many of those he talks to every day are afraid of missing out, which is the perfect breeding ground for a price rally. But alongside all that euphoria, he’s also realistic enough to know that a new all-time high isn’t for tomorrow.
“What makes me doubt that we can get back to old highs this year is Fed Chairman Powell…he sticks to what he promises, and I don’t see the Fed changing its monetary policy and lower interest rates in the near future”.
Bitcoin price technical benchmarks
Bitcoin is currently up 1.92% at a price of $24,410, while the weekly loss is -1.25%.
The cryptocurrency tested the support of the 38.2 percent Fibo retracement of $23,775 yesterday. The ensuing rebound, however, was enough to push the price back above the 23.6 percent Fibo retracement of $24,332. This level now offers immediate support and until it dips sustainably, we can expect a test of the $25,233 high.
Only if yesterday’s low of $23.593 is breached on the day’s close should an extension of the downside move towards the 50 percent Fibo retracement of $23.325 and Fibo retracement be expected. 61.8 percent to $22,875.
By Marco Oehrl