In the world of cryptocurrencies, Bitcoin remains one of the most popular and widely traded assets. Recently, since the chairman Federal Reserve System of the USA Jerome Powell has warned of higher-than-expected interest rates, with many investors questioning whether this will lead to a collapse in cryptocurrency prices.
In this update, we take a closer look at the current state of the cryptocurrency market, analyze the latest Bitcoin price trends, and predict what the future holds for the world’s most famous digital asset.
Bitcoin failed to stop losses and remain in the red amid Powell’s hawkish stance and uncertainty surrounding Silvergate Bank
Bitcoin Price Prediction: Quick Fundamental Prediction
Bitcoin (BTC), the world’s largest cryptocurrency, failed to gain positive momentum and continues to flash red within the $22,000 range. The decline can be explained by comments made by US Federal Reserve Chairman Jerome Powell regarding interest rate hikes.
It is important to note that the cryptocurrency market experienced a decline following Powell’s comments and the uncertainty surrounding Silvergate Bank.
This has led to a sense of uncertainty among traders and investors, who are now trying to understand the potential impact of Powell’s comments on the market.
In addition to Powell’s comments, the uncertainty surrounding Silvergate Bank also played a role in the cryptocurrency market’s decline.
The tension surrounding the bank increased the feeling of uncertainty among investors, which led to a fall in cryptocurrency prices.
This affected other prominent cryptocurrencies such as Ethereum (ETH), Dogecoin (DOGE), Ripple (XRP) and Solana (SOL), which also suffered losses for the day.
Fed Chairman Powell warns of higher interest rates than expected
Federal Reserve Chairman Jerome Powell completed his second and final day of congressional testimony in a relatively quiet three-hour hearing before the House Financial Services Committee. In contrast to Tuesday’s Senate Banking Committee hearing, markets remained flat during the question-and-answer session, where stocks fell sharply after Powell suggested more interest rate hikes were possible to combat persistent inflation.
On Wednesday, Powell aimed to allay investor concerns by stressing that no decision had been made to raise rates more sharply. He stated: “If — and I emphasize that a decision has not been made on this — if the totality of the evidence suggests that a faster rate hike is warranted, we would be prepared to increase the pace of rate hikes.”
BTC closes in on $20,000 amid US Federal Reserve pressure on cryptocurrencies
Bitcoin (BTC) is now 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 performance was better than expected, leading to expectations that the final level of interest rates will be higher than previously expected.
This created uncertainty in the market and put pressure on cryptocurrencies such as Bitcoin.
Powell’s remarks had a significant impact on the US dollar, which jumped to a two-month high on the US Dollar Index (DXY), which subsequently helped lower BTC prices.
It is important to note that the rise in the value of the US dollar has made Bitcoin and other cryptocurrencies more expensive for investors holding other currencies, leading to a decrease in demand.
This recent development highlights the volatility of the cryptocurrency market. He emphasizes the importance of keeping a close eye on geopolitical events and economic data that can significantly affect the market.
Uncertainty surrounding Silvergate Bank and its impact on the cryptocurrency market
In addition to Powell’s remarks, the market’s decline was further compounded by uncertainty surrounding Silvergate Bank. The bank is known for its strong support of cryptocurrency companies, but it is rumored to have faced some regulatory issues.
This has left traders and investors worried about the bank’s future support for bitcoin companies.
Bitcoin price
The current price of Bitcoin is $21,700 and the 24-hour trading volume is $22 billion. Bitcoin is down more than 1.50% in the previous 24 hours. Bitcoin is currently the market leader with a real market capitalization of $420 billion.
In technical analysis, Bitcoin now has immediate support near the $21,550 level. A breakout of this level could trigger a bullish rebound.
On the other hand, Bitcoin’s immediate resistance is at $22,000. A breakout of this level could lead BTC price to $22,500 or $22,850.
Conversely, a break of the $21,550 level could extend the selling trend to the $20,550 mark.
