Powell Causes BTC to Sink Some Time FOMC!


"Hmm do you think the price of BTC will go down again?"

Bitcoin (BTC) fell below $42,500 when Federal Reserve (Fed) Chairman Jerome Powell made somewhat hawkish comments during the Federal Open Market Committee (FOMC) meeting at three o'clock this morning despite hopes of an interest rate cut.

Reportedly, the Fed kept interest rates unchanged at 5.25% up to 5.5%, so investors are more interested in monitoring the indication of when the central bank of the United States (US) might lower interest rates following many expecting it to happen in March 2024.

However, Powell believes the Fed committee will not reach a high level of confidence to identify whether March is the right month for interest rate cuts.

According to Alex Kr├╝ger, macro analyst and co-founder of Asgard Markets said that the interest rate cut may start in May or June 2024 and not the following March it is too early to do.

Meanwhile YouHodler Market Head Ruslan Lienkha thinks any hawkish signs could trigger a price correction in the stock market and as a result, risky assets like BTC could see significant capital outflows.

Even so, BTC's downward movement may not be drastic as the digital asset hovers between $44,000 and $42,000 without a clear direction, Swissblock analysts commented in a Wednesday market report.

As of this writing, BTC price has plunged by 1.90% at $42,014 in the last 24 hours with a market cap of $824 billion but is still up 4.72% over the past week.