Bitcoin price falls after Fed shifts interest rate hikes forward amid inflation

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Bitcoin price falls after Fed shifts interest rate hikes forward amid inflation fears

Bitcoin dropped closer to a key support level and the Dow and the S&P 500 pulled back after the Federal Reserve moved forward its plan for 2 interest rate hikes in 2023.

Bitcoin (BTC) price extended its losses shortly after Federal Reserve Chair Jerome Powell announced that the Fed would move forward its timeline and schedule two interest rate hikes in 2023.

Bitcoin price was already seeing weakness in the early trading hours after losing the $40,000 level to mark an intra-day low at $38,300. The Dow and S&P 500 also pulled back 0.77% and 0.54% respectively.

The decision comes as economists worry about rising inflation in the United States and Powell said that the Fed had raised its inflation expectation from 2.4% to 3.4%. While Powell described the current inflation spike as “transitory”, consumer prices are at a 13 year high and analysts worry that rising inflation will impact the post-covid economic recovery.



https://cointelegraph.com/news/bitcoin-price-falls-after-fed-shifts-interest-rate-hikes-forward-amid-inflation-fears?_ga=2.70163920.1358032326.1623919706-1853526795.1623750132