In the world of cryptocurrency, Bitcoin remains one of the most popular and widely traded assets. However, just recently, as US Federal Reserve Chairman Jerome Powell warned of higher-than-expected interest rates, many investors have wondered if this will cause the price of this crypto to fall.
In this article today, we will take a closer look at the current state of the cryptocurrency market, analyze recent Bitcoin price trends, and try to predict what the future holds for the world’s most famous digital asset.
Waiting for, Bitcoin failed to stem its losses and continues to display in the red amid Powell’s aggressive stance and uncertainties surrounding Silvergate Bank.
Bitcoin Price Prediction: Fundamental Insights
Bitcoin (BTC) was unable to gain positive traction and continues to flash red in the area below $22,000. The declines can be attributed to comments by US Federal Reserve Chairman Jerome Powell regarding interest rate hikes.
It is important to note that the cryptocurrency market saw a decline following Powell’s comments and uncertainty surrounding Silvergate Bank.
This led to a feeling of uncertainty among traders and investors who are now trying to figure out the potential impact of Powell’s comments on the market.
In addition to Powell’s remarks, uncertainty surrounding the future of Silvergate Bank has also played a role in the decline of the cryptocurrency market.
The tension surrounding the bank has thus increased the feeling of uncertainty among investors, leading to a drop in cryptocurrency prices.
This also had an impact on other well-known cryptocurrencies, such asEthereum (ETH), Dogecoin (DOGE), Ripple (XRP) and Solana (SOL), which also suffered losses today.
Fed Chairman Powell warns of higher than expected interest rates
Federal Reserve Chairman Jerome Powell concluded his second and final day of congressional hearings with a relatively uneventful three-hour briefing before the House Financial Services Committee. Unlike Tuesday’s Senate Banking Committee hearing, markets held steady throughout the Q&A, where stocks fell after Powell suggested the possibility of an interest rate hike to combat persistent inflation.
On Wednesday, Powell aimed to ease investor concerns by stressing that no decision had been taken on deeper rate hikes. He said: “If, and I emphasize that no decision has been made on this, if all the data were to indicate that a faster tightening is warranted, we would be prepared to pick up the pace. rate hikes.”
BTC approaches $20,000 amid US Federal Reserve pressure on cryptocurrencies
Bitcoin (BTC) is currently at risk of falling below the $20,000 mark for the first time in two months due to the aggressive stance of the US Federal Reserve.
US Federal Reserve Chairman Jerome Powell said recent economic indicators have been better than expected, suggesting that the ultimate level of interest rates will be higher than expected.
This created uncertainty in the market and put pressure on cryptocurrencies, such as Bitcoin.
Powell’s remarks also had a significant impact on the US dollar, which hit a two-month high on the US dollar index and subsequently contributed to lower oil prices. BTC.
Importantly, the rise in the value of the US dollar has made Bitcoin and other cryptocurrencies more expensive for investors holding other currencies, effectively driving down demand.
This recent development highlights the volatility of the cryptocurrency market. He stresses the importance of closely monitoring geopolitical developments and economic data that could have a significant impact on the market.
Uncertainty surrounding Silvergate Bank and its impact on the cryptocurrency market
In addition to Powell’s remarks, the market downturn was further exacerbated by the uncertainty surrounding Silvergate Bank. The bank is known for its strong support for cryptocurrency companies, but rumors suggest it has faced regulatory issues.
This has caused traders and investors to worry about the bank’s future support for Bitcoin companies.
Moreover, recent rumors status of a Silvergate liquidation request. If this were to be confirmed, we can expect the market to be affected negatively.
Bitcoin price
The current Bitcoin price is $21,660 and the 24-hour trading volume is $22 billion. Bitcoin drops more than 1.60% in the past 24 hours and now represents a live market cap of $420 billion.
In technical analysis, Bitcoin is currently enjoying immediate support near the $21,550 level. A breakout of this level has the potential to trigger a bullish bounce.
On the upside, Bitcoin’s immediate resistance sits at $22,000. A breach of this level could cause the price of BTC to rise towards the $22,500 or $22,850 levels.
Conversely, a break of the $21,550 level could extend the selling trend to the $20,550 support level.
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Disclaimer: This linked article presents the views of crypto industry players and is not part of the editorial content of Cryptonews.com.
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