Before the Fed meeting to be held this evening at 21:00, the Bitcoin price fell below 44 thousand dollars. Fed member Lael Brainard’s saying that it is “important” to contain inflation and hinting that the central bank will trim its balance sheet in May contributed to the selling pressure.
Bitcoin fell hard, what did Lael Brainard say?
The Fed’s nominee for vice chairman, Brainard, said the Fed would begin “rapidly” reducing its balance sheet right after the May meeting. He added that inflation is exposed to upside risks. The comments were taken as a sign that the consensus among Fed officials was shifting in a more hawkish direction, given that he was willing to avoid excessively rapid tightening. Bitcoin and most major altcoins are responding to Brainard’s comments with drops of more than 5%.
Twitter’s Bozokcoin shared its upward expectations from a Bitcoin holding at 45 thousand 500 dollars after the Fed decision:
It is already pricing the 0.50 base interest increase, it would be very positive for Bitcoin to price close to 45.500 levels… I often share my comment 3-2 days ago… Bitcoin is still at 45.500… BTC dominance is currently 41.78…. As of today, I expect an upward recovery in BTC along with altcoins…
Lael Brainard’s statements acted as a driving force in breaking a critical support zone of Bitcoin:
The effect of the news from the Fed There was a sharp decrease in the night with… BTC retreated to 44.400 level. Fed official Lael Brainard said that he expects a systematic increase in interest rates and a rapid contraction in the Fed’s balance sheet in order to bring monetary policy to a “more neutral position” this year, and that additional tightening can be made if necessary
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Despite the current correction, analysts continue their upward expectations
Erhan Ünal, whose analysis we shared as Kriptokoin.com, recently said that as long as Bitcoin does not break $ 48 thousand, downward reactions should be considered normal. Ünal thinks that this breakdown will happen in 1-2 weeks. At the time of writing, BTC is trading around $44,300 with the reaction at the daily low of $44,000.12.
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