In this Bitcoin Stands Up To The Fed BTC price prediction, we’ll cover Inflation, Interest rate hikes, Current investors switching to cryptocurrency, and Upheaval in the Bitcoin network. There’s a good chance that Bitcoin will continue to rise in price, but there are also many things to keep in mind before jumping into the market. Visit this reliable trading website if you want to start your Bitcoin trading experience.
Inflation in the US will likely slow down this month, but that may not stop the Federal Reserve from aggressively raising interest rates. The higher interest rates have rattled crypto markets this year, making the price of bitcoin tumble. The rise in the consumer price index from a year ago is likely to ease slightly to 8% in July, down from a four-decade high of 9.1% in June.
The Federal Reserve has been aggressive in raising interest rates this year. Jerome Powell, the chairman of the Federal Reserve, said that a significant focus of the central banking system is bringing inflation to 2%. This move is likely to put more pressure on the dollar, and the dollar’s price index, which tracks its value against major currencies, is rising 11% this year. But the rise in the dollar’s value this year means that bitcoin may be forced to fall even lower.
Current Investors Switching To Cryptocurrency
Bitcoin and other cryptocurrencies have become increasingly popular with retail investors, who are now moving from traditional investments to the crypto space. In recent years, increased regulatory risks have accompanied a price rise. A recent survey by Pew Research, a Washington think tank, found that 16% of Americans have used, traded, or invested in crypto. Another New York Digital Investment Group study showed that 46 million Americans now own some type of crypto. This represents 14% of the American population.
Last week, the global crypto market was on a bullish course, fueled by the less hawkish Fed easing inflation fears. This prompted an increase in risk appetite for riskier assets. The Fed price prediction will undoubtedly impact the crypto market in the coming weeks.
Upheaval Across The Bitcoin Network
The recent prediction by the Fed to increase interest rates has caused upheaval in the Bitcoin network, with traders warning that the upcoming hike could cause the price to crash. According to a pseudonymous trader named Doctor Profit, the BTC price is already at a low point, and the Fed rate hike would only push it lower. He encouraged investors to avoid the walk and consider other future decisions that the Fed may make.
The Fed released hawkish minutes from its December meeting, signaling that the central bank may tighten monetary policy more quickly than expected. This would affect volatile assets like Bitcoin, as traditional investors seek safer investments. Further, political unrest in Kazakhstan and an internet shutdown have reduced the bitcoin mining power. Since the shutdown, bitcoin’s hash rate has decreased by 12%.
Bitcoin’s price has been affected by global economic uncertainty. Inflation is hitting 40-year highs, and central banks have responded by aggressively raising interest rates, raising the risk of a recession. The US Federal Reserve has hiked rates by 50 basis points in May and 75 basis points in June, and it is expected to do it again in July. While some analysts believe that the Fed’s decision will affect the price of Bitcoin, others think it will help the cost of the crypto.
Cryptocurrency is an emerging asset that has the potential to change the world economy. Some experts believe it is a good investment choice, and the price will rise in the coming years. However, it is essential to remember that there is no “set” price for Bitcoin. The price is constantly fluctuating and is affected by institutional investors. Nevertheless, there is a long-term upward trend.
Cryptocurrency’s Future Price
Cryptocurrency experts are divided over whether or not the current environment is a bad one for bitcoin. While the central bank’s plans to raise interest rates in the future could hurt the value of bitcoin, other analysts believe the current environment is good for the cryptocurrency. Digital currency is evolving into a digital-reserve asset, positively affecting the price.
Goldman Sachs, a leading investment firm, recently announced opening up its digital currencies to include. TD Ameritrade and Schwab also offer their clients exposure to the crypto market. Today, most brokerages offer trading in crypto assets. The future price of bitcoin may be affected by sentiment and regulation, but analysts are optimistic that it will remain worth a fortune for years to come.
Moving averages are popular tools in the cryptocurrency trading world, and they provide traders with a powerful tool to help them analyze trends. The longer the moving average is, the stronger the support and resistance it provides. For example, if a coin trades above the 200-day moving average, it likely represents a long-term uptrend. If it is selling below, it may be a sign of a short-term downtrend.