Bitcoin plummets to $21,930 after Jerome Powell announces higher-than-expected rate hike

Federal Reserve Chairman Jerome Powell said it was ready to raise interest rates further if circumstances warranted such drastic measures.

Most financial markets, especially cryptocurrencies, have calmed down over the past few days ahead of Jerome Powell’s testimony before Congress on the central bank’s upcoming monetary plans.

Speaking before the Senate Banking Committee on Tuesday, the Fed chairman suggested the agency could raise its benchmark interest rate more than previously expected. This is contrary to what most experts believe, as the prevailing assumption is that the Fed will not push rates above 6%.

“The latest economic data was stronger than expected, suggesting that interest rates could end up being higher than previously thought,” Powell said.

The stagnation in the crypto market was broken by the comments from the Fed chair. Before that, BTC was stagnant around $22,400 without any significant movement for a few days.

Shortly after Powell’s warning, however, bitcoin fell below $400 and below $22,000, marking a three-week low.Currently, the price has recovered and is trading at $22,269

Source: TradingView

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According to Cryptopotato

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