{"id":11065,"date":"2023-03-23T03:37:01","date_gmt":"2023-03-23T03:37:01","guid":{"rendered":"https:\/\/www.cryptoheretostay.com\/?p=11065"},"modified":"2023-03-23T03:37:03","modified_gmt":"2023-03-23T03:37:03","slug":"bitcoin-price-whipsaws-as-fed-says-rate-hikes-may-not-be-appropriate","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=11065","title":{"rendered":"Bitcoin price whipsaws as Fed says rate hikes may not be \u2018appropriate\u2019"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>Bitcoin (BTC) saw heavy volatility on March 22 as the United States Federal Reserve hinted that it might stop interest rate hikes.<\/p>\n<p><em>BTC\/USD 1-hour candle chart (Bitstamp). Source: TradingView<\/em><\/p>\n<h2>Powell on rates: \u201c\u2018May\u2019 and \u2018some\u2019 instead of \u2018ongoing\u2019\u201d<\/h2>\n<p>Data from Cointelegraph Markets Pro and TradingView\u00a0showed sharp moves both up and down for BTC\/USD as the Fed hiked by an anticipated 25 basis points.<\/p>\n<p>During a\u00a0press conference, Fed Chair Jerome Powell appeared to play down the ongoing U.S. banking crisis and its aftermath while hinting that the day\u2019s interest rate hike may be the last.<\/p>\n<p>In prepared remarks, Powell said that the Fed believes that \u201cevents 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.\u201d<\/p>\n<p>\u201cIt is too soon to determine the extent of these effects, and therefore too soon to tell how monetary policy should respond,\u201d he stated.<\/p>\n<p>\u201cAs 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.\u201d<\/p>\n<p>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\u2019s responses to press inqueries.<\/p>\n<p>On rate hikes specifically, he said that the terms \u201cmay\u201d and \u201csome\u201d as opposed to \u201congoing\u201d would be best to describe future policy.<\/p>\n<p lang=\"en\" dir=\"ltr\">Markets taking Fed decision as slightly dovish as forward guidance statement makes pause in May more likely. Fed now says that \u201csome additional pol firming may be appropriate.\u201d This is downgrade from prior statement. Dollar drops, Gold, Bitcoin, stocks rise, Yield curve steepens. pic.twitter.com\/5jpIbunveI<\/p>\n<p>\u2014 Holger Zschaepitz (@Schuldensuehner) March 22, 2023<\/p>\n<p>Reacting, some commentators nonetheless described Powell\u2019s Fed as \u201chawkish\u201d in prioritizing inflation above the banking crisis by continuing hiking.<\/p>\n<p>\u201cThe Fed have shown thus far, that they are committed to rates higher for longer + inflation as enemy #1,\u201d Tedtalksmacro wrote in part of Twitter follow-up.<\/p>\n<h2>BTC price comes full circle<\/h2>\n<p>Bitcoin, thus, did not deliver the trip to $30,000 some had hoped for in the run-up to the rate hike decision.<\/p>\n<p><strong><em>Related:\u00a0Will the Fed stop rate hikes? 5 things to know in Bitcoin this week<\/em><\/strong><\/p>\n<p>\u201cShorts liquidated then longs liquidated. Back to the same price we were an hour ago,\u201d analyst Matthew Hyland summarized.<\/p>\n<p>Data from monitoring resource Coinglass put the total crypto liquidations for the day at $36 million and $78 million for shorts and longs, respectively.<\/p>\n<p><em>Crypto liquidations chart. Source: Coinglass<\/em><\/p>\n<p class=\"post-content__disclaimer\">The views, thoughts and opinions expressed here are the authors\u2019 alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.\n<\/p>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/bitcoin-price-whipsaws-as-fed-says-rate-hikes-may-not-be-appropriate\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin (BTC) saw heavy volatility on March 22 as the United States Federal Reserve hinted that it might stop interest rate hikes. BTC\/USD 1-hour candle chart (Bitstamp). Source: TradingView Powell on rates: \u201c\u2018May\u2019 and \u2018some\u2019 instead of \u2018ongoing\u2019\u201d Data from Cointelegraph Markets Pro and TradingView\u00a0showed sharp moves both up and down for BTC\/USD as the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":11066,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-11065","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/11065","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11065"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/11065\/revisions"}],"predecessor-version":[{"id":11067,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/11065\/revisions\/11067"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/11066"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11065"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11065"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11065"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}