Bitcoin Price Prediction As Fed Chair Powell Warns Of Higher Than Expected Interest Rates – Will Crypto Prices Crash?

by Arthur · March 8, 2023

In the world of cryptocurrency, Bitcoin remains one of the most popular and most traded assets. Recently, as US Federal Reserve Chairman Jerome Powell warned of higher-than-expected interest rates, many investors are questioning whether this will lead to a crash in crypto prices.

In this update, we’ll take a closer look at the current state of the cryptocurrency market, analyze recent trends in Bitcoin prices, and predict what the future holds for the world’s most famous digital asset.

Bitcoin failed to stem losses and remain in the red Amid Powell’s hawkish stance and uncertainty surrounding Silvergate Bank

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Bitcoin Price Prediction: Quick Fundamentals View

Bitcoin (BTC), the world’s largest cryptocurrency, has failed to gain any positive traction and continues to flash red within the $22,000 range. The declines can be attributed to comments from US Federal Reserve Chairman Jerome Powell regarding interest rate increases.

It is important to note that the cryptocurrency market has experienced a slowdown 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.

Aside from Powell’s comments, the uncertainty surrounding Silvergate Bank has also played a role in the decline in the cryptocurrency market.

The tension surrounding the bank has increased the sense of uncertainty among investors, leading to a fall in cryptocurrency prices.

This has affected other well-known cryptocurrencies, such as Ethereum (ETH), Dogecoin (DOGE), Ripple (XRP) and Solana (SOL), which have also experienced losses on the day.

Fed Chair Powell warns against higher than expected interest rates

Federal Reserve Chairman Jerome Powell concluded his second and final day of congressional testimony with a relatively uneventful three-hour hearing before the House Financial Services Committee. Unlike Tuesday’s Senate Banking Committee hearing, markets remained steady through the question-and-answer session, where stocks fell after Powell hinted at the possibility of higher rate hikes to combat persistent inflation.

On Wednesday, Powell aimed to assuage investors’ concerns by stressing that no decisions had been made on steeper rate hikes. He stated: “If – and I emphasize that no decision has been made on this – if the totality of the data should indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes.”

BTC approaches $20,000 amid US Federal Reserve crackdown on cryptocurrencies

Bitcoin (BTC) is currently at risk of falling below the $20,000 mark for the first time in two months due to the US Federal Reserve’s hawkish stance.

The chairman of the US central bank, Jerome Powell, has stated that the latest economic indicators have come in better than expected, leading to the expectation that the final interest rate level will be higher than previously thought.

This has created market uncertainty and put pressure on cryptocurrencies, such as Bitcoin.

Powell’s remarks significantly affected the US dollar, which jumped to a two-month high on the US Dollar Index (DXY) and subsequently contributed to the decline in BTC prices.

It is important to note that the rising 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. It emphasizes the importance of paying close attention to geopolitical developments 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 comments, the market’s decline has been further compounded by the uncertainty surrounding Silvergate Bank. The bank is known for its strong support of cryptocurrency companies, but rumors suggest it has faced some regulatory issues.

This has caused traders and investors to worry about the bank’s future support for Bitcoin companies.

Bitcoin price

The current Bitcoin price is $21,700, and the 24-hour trading volume is $22 billion. Bitcoin has fallen by over 1.50% in the last 24 hours. Bitcoin is now the market leader, with a live market cap of $420 billion.

In technical analysis, Bitcoin currently has immediate support near the $21,550 level. A breakout at this level has the potential to trigger a bullish bounce-off.

**Bitcoin Price Chart – Source: Tradingview**

On the upside, Bitcoin’s immediate resistance is at the $22,000 mark. A bullish breakout of this level could lead to an increase in BTC price towards the $22,500 or $22,850 level.

Conversely, a breakout of the $21,550 level could extend the selling trend to the $20,550 mark.

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Top Cryptocurrencies to Watch in 2023

You can visit Cryptonews’ Industry Talk team’s thoughtfully curated list of the top 15 altcoins to watch in 2023. This list is frequently updated with new ICO projects and altcoins, so be sure to check back often to stay up to date with the latest the development .

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