US Federal Reserve Chairman Jerome Powell spoke in the Senate and, in his trademark fashion, crashed the markets.
Key points of the speech:
- policy easing is currently undesirable;
- a further increase in the rate is appropriate;
- peak rates will be higher than expected;
- We will keep the rate at a high level for a certain time.
The first result of this negativity was a change in the forecast for a rate hike in March. According to FedWatchalmost 75% of experts now believe that the US Federal Reserve will again return to increase by 0.5% instead of 0.25% previously expected.
Then the stock and cryptocurrency markets began to fall and, accordingly, the dollar index (DXY) and US bond yields grew.
According to the Cryptocurrency Screener Cryptovizorwhich determines the market price of BTC/USD based on the results of trading on the largest spot exchanges, bitcoin fell to $21,805 today.
WITH points of view trader Crypto Tony, the situation is bearish. He drew attention to the lower highs on the chart and reported that he continued to hold a short position in bitcoin.
Michael van de Poppe, head of the trading firm Eight, also expects further depreciation of the cryptocurrency, however thinksthat the fall would end at $21,200. He added:
If we want $30,000, then we need to go back to $23,000.
Cryptovizor CEO Alex Zukutoke studied the weekly Bitcoin chart and came to conclusionthat the bull market will not return until the price consolidates above $25,000.
Today, Powell is due to continue his speech to the US Congress (18:00 MSK). Let’s hope it doesn’t get worse.
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