Bitcoin prices rose above $20,000 today after falling below levels seen in previous sessions as hawkish Fed rhetoric about inflation and a slowing economy continued to weigh on risk assets. The largest and most widely used cryptocurrency is trading at $20,333, slightly higher.
The market capitalization of all cryptocurrencies crossed the $1 trillion threshold again today after rising nearly 2% to $1.04 trillion the previous day, according to recent data. However, does this signal a buying opportunity for BTC and how far will the price of the digital asset fall? continue reading.
Popular cryptocurrency analyst Nicholas Merten predicts that the price of digital assets will go further in the wake of the recent economic statement by Federal Reserve Chairman Jerome Powell fell.
Cryptocurrency decline could deepen
Friday, Jay Rom Powell announced that the Federal Reserve will adopt a tightening monetary policy policy to raise interest rates and control inflation. Several knowledgeable cryptocurrency experts commented following the announcement.
Jerome Powell’s comments to 515,000 subscribers and the following quote from his speech will lead to more losses for cryptocurrencies and other digital assets, according to the DataDash server that posted a statement on Youtube:
In addition, he stated in the statement, The Fed’s strategy, even if it hurts the market temporarily, achieves its goal by reducing inflation:
Honestly, he says most of us have a bad view of the Fed. But when it comes to monetary policy, the Fed is doing exactly the way it should. It evaluates small balance reductions and raises interest rates. In his view, even a 100 basis point change is the best thing the Fed can do. It is best to induce shock and awe, which will effectively bring the economy to a standstill for a while, reduce consumer demand in the short term, and restore balance.