Bitcoin Tumbles to $26.9K on Hawkish Remarks by Federal Reserve's Powell
The Wednesday pause in rate hikes had been overwhelmingly expected by market participants, but Fed members now see much higher interest rates for next year than previously projected. In a widely anticipated move, the U.S. Federal Reserve on Wednesday held monetary policy steady, leaving the range for its benchmark interest rate at 5.25% to 5.50%. Fed officials also projected keeping interest rates higher for next year at around 5.1%, a significant jump in expectations compared to 4.3% in the June prediction. They also see stronger economic growth for this year, expecting a 2.1% real GDP increase versus a 1% forecast in June. "In determining the extent of additional policy firming that may be appropriate to return inflation to 2% over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments," the Fed statement reads. Bitcoin's (BTC) price remained flat around $27,200 in the minutes following the central bank’s announcement, but later tumbled some 1% to $26,900 as Fed Chair Jerome Powell said in a press conference that the central bank will do more rate hikes if the economy remains stronger than expected. Powell also said that the majority of Fed members believe "one more rate hike is more likely than not appropriate" to reach the Fed's goal during the remaining two Federal Open Market Committee (FOMC) meetings. "The big news is the 2024 rates projection, [which is] higher than I expected. This is a very big signal," crypto and macro analyst Noelle Acheson said in an email. "It's the message sent by effectively taking two rate cuts off the table, which also suggests that any rate cuts will come later than the market had been hoping." Market research firm Asgard Markets expected some profit-taking would ensue following the Fed's decision. "Positioning and sentiment aren't as light [and] offsides as they were earlier this year, and there aren't many new catalysts on the horizon, meaning 'in-the-money' participants will take some chips off the table and reassess,” it said Tuesday in a note. The FOMC’s next policy meeting is set for the start of November. Before today’s events, market participants had priced in about a 70% chance there would be no rate change at that November meeting, according to the CME’s FedWatch tool. https://www.coindesk.com/markets/2023... #crypto #bitcoin #ethereum #cryptocurrency #news #blockchain #litecoin #cryptonews #cryptonewstoday #cryptoworld #cryptoworlddaily #federalreserve #federalreservenews #federalreservenewstoday #fomc #fomcnews #fomcnewstoday #bitcoin #bitcoinnews #bitcoinnewstoday #interestrates #interestratesnews #crypto ***NOT FINANCIAL, LEGAL, OR TAX ADVICE! JUST OPINION! I AM NOT AN EXPERT! I DO NOT GUARANTEE A PARTICULAR OUTCOME I HAVE NO INSIDE KNOWLEDGE! YOU NEED TO DO YOUR OWN RESEARCH AND MAKE YOUR OWN DECISIONS! THIS IS JUST ENTERTAINMENT! This information is what was found publicly on the internet. This information could’ve been doctored or misrepresented by the internet. All information is meant for public awareness and is public domain. This information is not intended to slander harm or defame any of the actors involved but to show what was said through their social media accounts. Please take this information and do your own research. bitcoin, blockchain, crypto, cryptocurrency, altcoin, investment, ethereum, bitcoin crash, xrp, cardano, ripple
