After what was a blissful start to the day for Bitcoin, it is edging towards a bad end after its price took a hit upon the Federal Reserve’s (FED) boss, Jerome Powell’s comment of bleak hopes of a rate cut in March. Bitcoin slipped below $43,000, losing over 3% in a few hours.
Powell released an unmoved interest rate of 5.25–5.5% for the fourth straight month on Wednesday, stating that inflation was way above its target of 2%. Although the commission stated its openness to cutting rates, it insisted the time was not yet ripe.
“We want to see more good data. We need to see more evidence that we are on a sustainable path to 2% inflation,” Powell said.
March in Obvious Doubt
The straw that broke Bitcoin and the entire crypto market’s back was an unoptimistic expression by the Fed boss when asked what interest rates would look like in March. Powell stated outright that a rate cut at its next meeting in March was unlikely, as the committee may not be confident enough then to cut rates.
The global market fell sharply following the comments, with Bitcoin losing its cool after it steadied above $43,500 upon the steady rate announcement by the Fed. Ethereum and SOL also fell significantly, wiping out all their gains for the day.
Bitcoin recovered from a downtrend on Tuesday, adding over $1,000 to trade above $43,500. Assets like Ethereum and Solana followed suit, moving to $2,350 and $102, respectively. However, the digital assets lost a chunk of their gains, posting a negative end to Wednesday.
Traditional markets like Nasdaq trimmed over 2% while the S&P 500 fell 1.6%. Dow and Jones also dropped 0.1% as the global market suffered from the announcement.
Bitcoin still looks in shape above $42,000 and may continue its range between that price and $44,000. A push above or below the price range could give a new direction to the most prominent cryptocurrency in the world.
