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Bitcoin price whipsaws as Fed says rate hikes may not be ‘appropriate’

Bitcoin sees swift fluctuations after the Fed hikes 0.25%, but Chair Jerome Powell hints that policy may now change.

Bitcoin (BTC) fluctuated unusually on March 22nd as the Federal Reserve hinted that it was likely to stop raising interest rates.

Powell mentioned interest rates: "May and some, not constantly."

Bitcoin fluctuated sharply against the dollar as the Fed expected to raise interest rates by 25 percent at its meeting, according to Cointelegraph Markets Pro and TradingView statistics.

At a regular press conference, the Fed's Jerome Powell seemed to play down the ongoing woes and adverse effects of non-Chinese commercial banks, while hinting that the day's rate hike might be the last.

Powell said in a speech prepared in advance that the Fed meeting felt that "banking events in the past two weeks may tighten bank credit conditions at home and businesses, thus affecting the conclusion of economic development."

"it is too early to identify this level of impact, so it is too early to tell how fiscal policy should respond," he said. "

As a result, we no longer make it clear that we expect an ongoing rate hike to be appropriate to quell inflation. Conversely, we currently estimate that some additional existing policy enhancements may be modest.

Bitcoin against the dollar initially fell to a local floor of $27867 on Bitstamp and then rose to more than $28000, but at the time of writing, the BTC/ dollar continued to fall as the country reabsorbed Powell's response to the news survey.

Especially at the level of raising interest rates, he pointed out that the words "very likely" and "some", rather than "ongoing", are more appropriate to describe the current policies in the future.

Even so, some commentators described the Powell-led Fed meeting as "radical", putting inflation above the banking crisis based on another rate hike.

Tedtalksmacro wrote in a later post on Twitter: "so far, the Fed meeting has made it clear that they are focused on raising interest rates over a longer period of time, and that inflation is the number one enemy."

The price of Bitcoin picks up

As a result, Bitcoin fell short of the $30,000 that some people had expected to raise interest rates.

"the empty bill is settled and the double end is settled. Return to the price of an hour ago. Matthew Hyland, an investment analyst, concluded.

According to Coinglass statistics from testing network resources, the total amount of login password settlement for bears and bulls on that day is $36 million and $78 million, respectively.

by William Suberg
© 2023 WJB All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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