The price of Bitcoin – the world’s most valued cryptocurrency, is presently down 5.09 percent and is trading at $35,686. Bitcoin was trading for about $40,000 just a few days ago, and this downturn isn’t tearing at the cryptocurrency market alone. The stock and commodities markets were also not left out from the selloffs that were instigated by comments made by the Chairman of the Federal Reserve – Jerome Powell. He made comments relating to the future interest rate hikes and raised concerns over rising inflation.
Jerome Powell’s comments led to a major decline in the stock, cryptocurrency and commodities market, and not even gold could escape the decline. The price of gold had earlier fallen below the $1,800 mark and has dropped over $130 since the beginning of the month after hitting an impressive high of $1,916. Gold’s high of $1,916 had remained untouched since January and crashed by the same report by the Federal Open Market Committee (FOMC) that caused the price of Bitcoin to fall.
Bitcoin has been facing some wild volatility of late. The price of Bitcoin hit an all-time high of $65,000 before falling to a low of $30,000. This was caused by Tesla’s rejection of the currencyas a means of payment for its electric vehicles which was out of environmental concerns.
The Federal Open Market Committee had a surprisingly aggressive tone yesterday while a decision concerning the report was being made. 11 officials out of 11, forecasts that at least two quarter-point interest rate increases for 2023 which is a signal that the central bank has started discussions on asset tapering. This gave a boost to the dollar index which automatically increased the strength of the dollar, and led to a decline in Bitcoin, and in turn the entire cryptocurrency market.
The FOMC report has caused a tense air in the crypto market causing investors to lose their confidence in the market and selling off their assets. As the exchange inflows in cryptocurrencies like Bitcoin continued, the commodity market was also affected and saw a decline.
Bitcoin continues to face wild price volatility amidst huge criticism. Ex-President Donald Trump, during a recent interview with Fox News, called Bitcoin a scam and a currency based on nothing but thin air. Bitcoin continues to soar in its own way, and quite recently, El Salvador adopted it as a legal tender.