Bitcoin Falls Back To $40,000 As Fed Mulls Faster Rate Bumps

Cryptocurrency markets were sluggish Friday after Federal Reserve Chairman Jerome Powell stated that interest rate hikes should be made “more quickly.” Powell also indicated that a rate hike of 0.5 percentage point was “on the table” for next month. James Bullard, President of the St. Louis Federal Reserve Bank, said Tuesday that he expects interest rates to reach as high as 3.5 percent by the end of the year. Bitcoin fell to $40,586 on Friday, down from a daily high of $42,965 at noon, while the whole cryptocurrency market retreated to $1.88 trillion. Tuesday morning, Bitcoin’s price fell below the $40,000 mark before regaining a few hours later. Bitcoin hovered just above $42,000 on Thursday. Make Or Break For Bitcoin The $40,000 barrier has emerged as a make-or-break point for Bitcoin, market observers say, as its performance from there could set the tone for whether the market reaches another bullish or bearish phase. With inflation surging, stocks collapsing, and investors clueless on how rapidly the central bank will hike interest rates, many would argue that now is the optimal time to invest in Bitcoin. Suggested Reading | Metaverse Tokens On Overdrive, Outpace Bitcoin And Ethereum Nonetheless, the world’s most valuable digital asset has shed almost 20% of its value thus far this year, dipping as low as $33,000 on January 25 before recovering. Bitcoin reached an all-time high of ...