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Bitcoin fixed below the key mark of $ 30,000 in trading on Wednesday. Thus, the markets play out the results of the speech of the head of the Fed, Jerome Powell. The official noted that in the face of rapidly growing inflation, the US regulator will continue to progressively tighten monetary policy.
Bitcoin has been steadily losing ground over the past seven weeks, thereby prolonging the global losing streak. In addition to the actions of the Federal Reserve, serious pressure on the crypto market is exerted by the fall in retail demand and the growth of systemic risks in the segment of digital assets.
Many coins followed Bitcoin. For example, Polkadot (DOT) for the previous day lost 6%, and Avalanche (AVAX), BNB, Ethereum (ETH) and Ripple (XRP) fell by 2-2.5% on average. Cryptocurrency Tron (TRX) one of the few was able to stay in the green zone, which was facilitated by the positive mood of investors in the stablecoin segment.
Jerome Powell, during his speech before Congress, noted that price stabilization is now an absolute necessity. At the same time, the regulator should do everything possible to realize this goal without putting serious pressure on the labor market and the activities of large households in the United States.
The official did not rule out that the Fed’s actions could slow down the growth of national GDP, but the Federal Reserve uses all the tools so that recessive signs do not begin to appear in the economy. Emphasis was also placed on the fact that the US regulator will consistently tighten monetary policy until inflation begins to slow down.
Given the fact that bitcoin is steadily correlated with US stock indices, as the quantitative easing program is reduced, it will experience pressure, like the entire cryptocurrency market.
Earlier, the editors of the Crypto.ru informed that many experts in the field of digital currencies are positively considering the medium-term prospects of Bitcoin. They expressed confidence that despite all the current difficulties, the demand for cryptocurrencies will increase in the foreseeable future. In particular, Robert Kayosaki expressed the opinion that the crisis not only in the digital currency market, but also in the global economy, was quite predictable.
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