Statements from the US Federal Reserve (Fed) may have reversed the direction of the rising crypto market and led to a decline.
Fed statements, which is one of the main sources of the issue of “those triggering the decline in the crypto market”, which we have listed recently, has left its mark on the global markets with its “indecision”. The effects of the Fed rate decision, which will be announced on March 22, have already had an impact on the financial markets. The recent statements by Fed Chairman Powell have pushed the crypto market into pessimism.
Could BTC, which had a downward trend in terms of technical and fundamental analysis, have been pushed to this path by the Fed?
Fed Chairman Powell Strangles Markets With His Statements
The Fed’s recent pressure on global markets had drawn attention. Especially in February, the Fed created an atmosphere of fear in crypto investors with its “warning to banks about crypto”. The “Fed Interest Rate Decision”, which global markets are always waiting for, stands out as one of the most uncertain situations in the upcoming period. In the past, more predictable “Fed Rate Decisions” did not put such pressure on global markets.
In particular, the statements made by Fed Chairman Powell triggered global markets. Powell’s statements that “interest rates may be higher than the central bank policy makers expect” have locked the financial markets.
In addition, Powell expressed his statements as follows;
“Recently released economic data was stronger than expected. Based on the incoming data, the forecasts for interest rates may be different than expected. Had the data been published differently, we would have been prepared to accelerate the pace of rate hikes.”
Powell Continuing His Speeches Resolutely
Stating that he is determined to reduce inflation to 2 percent, Fed Chairman Powell also touched upon inflationary pressures. Speaking for the Fed meeting in March, Powell said they have “critical data”. Also, referring to the stability in prices, Powell added that no action will be taken without clarity on this issue. Powell also warned for the sustainability of workforce and market resilience. These determined and harsh speeches of Powell have had great repercussions in the world financial sector.
Negative News From Financial Markets Coming One After Another
Fed Chairman Powell’s recent statements are seen as triggering negative situations in the financial market. Looking at the recent days, the trigger of the negative news from the financial markets is seen as the “Fed’s statements”. The continued indecision and tough stance on the Fed’s side have provided protection over the asset sectors. With the statement made by Silicon Valley Bank in the recent period, it was stated that there was a problem in the bank’s stocks.
Moves Continuing on the Fed Side
Continuing to instill fear with the “indecisive atmosphere” it has created recently, the Fed continues its moves on various financial markets. The Fed, which recently told banks to “be careful with crypto,” especially caught the attention of the crypto community. Touching on “stablecoins” in a speech he delivered today, the Fed stated that he is determined to accelerate his efforts in this direction and create an “expert working team”. In addition, work on the growing stablecoin issues continues not only from the Fed, but also from the crypto industry in general.
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