Ethereum
Fed’s ‘Critical’ Warning Raises Serious Warning of $50K Bitcoin Price Crash as $200 Billion Wiped From Ethereum, XRP, Solana, and Crypto
Updated 04/07 below. This article was originally published on July 03
Bitcoin
Bitcoin
suddenly dropped to around $60,000 per bitcoin after a Billionaire Bitcoin Buyer Reveals He Bought Bitcoin.
Subscribe now to Forbes Crypto Asset and Blockchain Advisor and “Discover the blockchain blockbusters poised for 1,000%+ gains” following the Bitcoin halving earthquake!
The price of bitcoin has struggled over the past month, down nearly 15% as fears of a ‘real correction’ mount.
NOW, after one of bitcoin’s biggest proponents said the cryptocurrency could eventually replace the US dollarFederal Reserve Chairman Jerome Powell warned of a “critical period” for the Fed, calling deficit levels “unsustainable.”
Sign up now for free CryptoCodex—A daily five-minute newsletter for traders, investors, and the crypto-curious that will keep you up to date and ahead of the Bitcoin and cryptocurrency market bull run.
US Federal Reserve Chairman Jerome Powell has warned that the Fed is facing a “critical” period that could… [+] cause chaos in the price of bitcoin.
Getty Images
“The level of debt we have is entirely sustainable, but the path we are on is unsustainable,” Powell said at the European Central Bank’s conference on Portugal. reported The Financial Times said the Biden administration was taking excessive risks by “running a very large deficit at a time when we are at full employment” and said that “you can’t sustain these levels for very long in good economic times.”
In May, Treasury Secretary Janet Yellen released a dire warning about America’s spiraling $34 trillion debt that some say could help propel bitcoin’s price to $1 million in the next 18 months.
Bitcoin, cryptocurrency and stock market traders have been closely watching the Fed for signs that it will begin cutting interest rates in recent months, with analysts forced to lower their expectations from around seven rate cuts in 2024 to just one or two.
“Getting the right balance of monetary policy during this critical period is really what I think about in the wee hours of the morning,” Powell said in response to a question about his main concerns, the AP reported. reported.
Update 04/07: The Bitcoin price and the cryptocurrency market have suffered a major crash over the past 24 hours, with the Bitcoin price dropping well below $60,000 and wiping $200 billion from the combined cryptocurrency market since July 1st. Ethereum and the rest of the major market are down harder than Bitcoin, with Ethereum rival Solana, Telegram-linked toncoin, and meme-based dogecoin all down nearly 10% since this time yesterday.
“Bitcoin is breaking through important technical and psychological levels at $60,000,” Markus Thielen, founder of 10x Research, wrote in emailed comments.
“This is a key level for bitcoin miners and spot exchange-traded fund (ETF) buyers, and it also broadly marks the bottom (support) of the three-month trading range. The price decline could accelerate as support is broken and sellers scramble for liquidity. Only uninformed traders are willing to buy here. A break of this support could lead to a sharp decline to $50,000.”
Last month, the Federal Reserve left interest rates unchanged and said it would make just one rate cut in 2024, with more expected in 2025. The Fed is under pressure to cut rates after raising them at a record pace following massive Covid-era stimulus spending and money printing that sent inflation soaring.
“Powell said the US was back on a ‘disinflationary path’ but added that more data was needed before the Fed would consider cutting rates,” Russ Mould, chief investment officer at AJ Bell, said in emailed comments. “That last sentence sounds a bit like a broken record as far as the market is concerned, so the most important part of Powell’s speech was the reference to disinflation, as investors interpreted it to mean there was a stronger case for cutting rates soon.”
Attention now turns to Wednesday’s release of the minutes of the Fed’s June meeting and Friday’s jobs report, which could “solidify” expectations of a September interest rate cut if it shows that hiring has slowed.
“A weaker-than-expected jobs report on Friday, if it were to occur, would likely further strengthen the case for this tapering, to which markets are assigning a probability of around 70% – perhaps a bit understated,” said Michael Brown, senior research strategist at Pepperstone. said Market surveillance.
Register now for CryptoCodex—A free daily newsletter for the crypto-curious
The price of bitcoin has fallen back from its recent peak of over $70,000 per bitcoin.
Forbes Digital Assets
The sustained high interest rate environment has prompted a warning from analysts at the world’s largest asset manager, BlackRock, who said an “unprecedented” scenario was unfolding that could affect the price of bitcoin and the cryptocurrency market.
“We see central banks being forced to keep interest rates higher than before the pandemic to address persistent inflationary pressures,” said analysts at BlackRock, which has helped drive a surge in bitcoin’s price this year. Leading a Bitcoin Cash Exchange-Traded Fund (ETF) Revolution on Wall Streetwrote in a report.