Bitcoin (BTC) Reaction To Powell Speech, US Rate Hike Hardly Lasts Long; Here’s Why

Bitcoin (BTC) Reaction To Powell Speech, US Rate Hike Hardly Lasts Long; Here’s Why
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Bitcoin (BTC) News: Considering the market’s confidence that the rate hike will further be slowed down this time to 25 bps, the crypto market reaction could go either way. In recent times, it has become a phenomenon for the to only adjust its momentum after digesting the outcome of the Fed’s rate hike announcement and the subsequent speech by the central bank’s chair Jerome Powell. Therefore, it is advised to wait and watch for some time after powell's speech is over before taking a Bitcoin stance. As a result, the market becomes more stable over time and uncertainty is already priced.

Also Read: US Fed Meet News Live Updates: Bitcoin (BTC) To Reach 25K or 21K?

Markets, both crypto and equity, may have the greatest potential to respond to how the Fed forecasts the future of interest rates. Traders would watch closely for any hint of an ‘' in 2023. The prospects of the Federal Reserve Committee on unemployment and inflation will also be decisive.

Powell Speech: Bitcoin (BTC) Fast Forward.

Whether cryptos prices would rise or fall will depend solely on Powell's rhetoric and his plan to control inflation over the next few months. This reflects the market consensus that the Fed will increase rates by 0.25 per cent, which will slow down after a series of rate hikes of 75 basis points in 2022. An increase of 25 basis points would raise the interest rate band to 4.50% to 4.75%. The CME Fed Watch Tool is currently projecting a 99.3% confidence in a 25 bps rise.

During this time, bitcoin (BTC) price shows high volatility, although it trades in a small range around the $23,000 brand. As of writing, BTC price stands at $23,006, down 0.77% in the last 24 hours, according to CoinGape price tracker

Also Read: Cathie Wood Revises Her Bitcoin (BTC) Price Prediction For 2030

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