Jerome Powell Cools Down the Bulls. Will the $20K Barrier Hold for the Price of Bitcoin?
Some food for thought.
In my last two issues on the price of Bitcoin, I shared with you several scenarios for the price of Bitcoin in March 2023. One of them is proving to be relevant. Then I detailed the 4 main points of concern for the Bitcoin price in the near term.
Of these points of concern, at least two have continued to strengthen in the last few hours.
It makes sense then that the price of Bitcoin is now struggling to stay above $22K. The market sentiment oscillates between neutral and the beginning of fear which was reinforced by Jerome Powell's statements on March 7, 2023.
The Fed chairman told U.S. lawmakers that the Fed would likely need to raise interest rates more than expected in response to recent strong data. Jerome Powell added that the Fed was prepared to take action in even greater proportions if the “totality” of the upcoming information suggested that stronger action must be taken to continue to combat high inflation.
Jerome Powell was very political yesterday in front of U.S. lawmakers, but the point is that the release of the February 2023 inflation figure for America on March 14, 2023, will be watched by all investors. The S&P 500 took a hit after Jerome Powell's statement by falling back below 4,000 points:
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