Major crypto prices are once more trending upward as traders foresee the rising prices peak and focus on the upcoming US interest level declaration. Federal Reserve Chairman Jerome Powell stated at a press conference this Wednesday that the falling price trend for Bitcoin, Ethereum, as well as several other significant coins is more hawkish than anticipated.
Considering pauses at this time would be premature. People envision pauses when they hear the word delay.
In his view, it is too soon to consider or discuss stopping rate increases. Powell remarked, at the time, that the Fed’s message is somewhat perplexing to traders because it differs from the backhanded announcement, which most observers perceived as the Fed being more dovish than before.
The impacts on the economy
It will consider cumulative monetary tightening and the lagging impact of financial regulation policies on economic actions and rising prices. On December 14, the Fed will denote its next interest rate decision. Powell’s remarks were sufficient to destroy Bitcoin, but as it surged on Thursday and Friday, cautious optimism started to return.
The market for cryptocurrencies is stimulated by the Federal Reserve’s announcement, as well as the idea that inflation may have peaked. The Fed is expected to stop raising rates and eventually start cutting them again if this happens. The rate hike freeze is regarded as very positive for the cryptocurrency market, which is not surprising.
Leading investors in the space, including Mike Novogratz, CEO of Galaxy Digital, have also drawn attention to the close connection between the Federal Reserve’s actions and the prices of cryptocurrencies.
Novogratz opinion
Novogratz said that he thought that Bitcoin will go to the exponential rising trend when the Fed pauses. In an April speech at the Bitcoin 2022 conference in Miami he stated the same info.
He also stated that he wished the dollar would remain strong and Bitcoin wouldn’t reach infinity. All Western stability will be lost if BTC price will rise such unprecedential hights. Bitcoin reached a daily high of more than twenty thousand dollars this Friday until dipping somewhat to its actual value of a little more than twenty thousand.