Connect with us

Hi, what are you looking for?


Bitcoin Price Volatile After Fed Says Rate Hikes May Not Be ‘Appropriate’

Image Source: Momentum studio / Shutterstock

Bitcoin (BTC) saw heavy volatility on March 22 as the United States Federal Reserve hinted that it might stop interest rate hikes.

Powell on rates: “‘May’ and ‘some’ instead of ‘ongoing’”

Data from Cointelegraph Markets Pro and TradingView showed sharp moves both up and down for BTC/USD as the Fed hiked by an anticipated 25 basis points.

During a press conference, Fed Chair Jerome Powell appeared to play down the ongoing U.S. banking crisis and its aftermath while hinting that the day’s interest rate hike may be the last.

In prepared remarks, Powell said that the Fed believes that “events in the banking system over the past two weeks are likely to result in tighter credit conditions for households and businesses, which would in turn affect economic outcomes.”

“It is too soon to determine the extent of these effects, and therefore too soon to tell how monetary policy should respond,” he stated.

“As a result, we no longer state that we anticipate that ongoing rate increases will be appropriate to quell inflation. Instead, we now anticipate that some additional policy firming may be appropriate.”

BTC/USD initially saw local lows of $27,867 on Bitstamp around the events before returning to trade above $28,000, only to continue falling at the time of writing as markets continued to digest Powell’s responses to press inqueries.

On rate hikes specifically, he said that the terms “may” and “some” as opposed to “ongoing” would be best to describe future policy.

Reacting, some commentators nonetheless described Powell’s Fed as “hawkish” in prioritizing inflation above the banking crisis by continuing hiking.

“The Fed have shown thus far, that they are committed to rates higher for longer + inflation as enemy #1,” Tedtalksmacro wrote in part of Twitter follow-up.

BTC price comes full circle

Bitcoin, thus, did not deliver the trip to $30,000 some had hoped for in the run-up to the rate hike decision.

“Shorts liquidated then longs liquidated. Back to the same price we were an hour ago,” analyst Matthew Hyland summarized.

Data from monitoring resource Coinglass put the total crypto liquidations for the day at $36 million and $78 million for shorts and longs, respectively.

Image Source: Momentum studio / Shutterstock

You May Also Like


In the past year, Peloton, manufacturers of stationary exercise bicycles and treadmills, has been experiencing some severe financial difficulties. The company went through a...


While the ongoing supply chain problems affecting the global economy have had the expected effects, they’ve also had some decidedly unexpected effects. Specifically, many...


As gas prices continue to rise and consumer confidence drops, not to mention the ongoing war in Ukraine, the European economy is taking a...


As the environmental need for electric vehicles becomes more pressing, and the car-buying public becomes more eager for them, automotive manufacturers are getting ready...


This morning, Coinbase CEO Brian Armstrong sent a mass email out to his company informing everyone that, as stock and crypto prices slip and...


As Russia’s invasion of Ukraine continues, many global businesses have pulled their dealings out of Russian territories due to a mix of sanctions and...


In the last few weeks, fears have begun to surface of another potential recession striking the United States economy. Economists have been working to...


It’s no secret that the highs of the COVID-19 pandemic cost movie theater chain AMC an unprecedented amount of money. As people isolated at...