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Post: Bitcoin Price Under Pressure Due to Powell’s Comments and Lack of Interest in Derivatives Market

Bitcoin Price Under Pressure Due to Powell’s Comments and Lack of Interest in Derivatives Market

Key Points:

  • Bitcoin’s price struggled to hold the $43,000 support level.
  • U.S. Federal Reserve Chair Jerome Powell pushed back on market expectations for interest rate cuts.
  • Leverage longs in BTC derivatives markets lacked interest, fueling speculation of a potential decline to $40,000.
  • Minneapolis Fed President Neel Kashkari suggested the monetary authority might wait before reducing interest rates.

Bitcoin faces price pressure due to Fed Chair’s comments:

Bitcoin’s price faced difficulties as it struggled to maintain support at $43,000. This was partly due to U.S. Federal Reserve Chair Jerome Powell’s comments pushing back on market expectations for interest rate cuts. Powell indicated that the central bank committee needs more assurance about inflation nearing the 2% target before taking action. This contradicted investors’ expectations of rate cuts starting in March, leading to uncertainty in the market.

Speculation of potential decline in Bitcoin price:

The lack of interest from leverage longs in BTC derivatives markets also contributed to speculation of a potential decline in Bitcoin’s price to $40,000. This lack of interest may indicate a decrease in bullish sentiment among traders and investors, which could further impact the price of Bitcoin in the short term.

Monetary policy may not be as tight as believed:

Minneapolis Fed President Neel Kashkari added to Bitcoin’s price pressure by suggesting that the current stance of monetary policy may not be as tight as believed. Kashkari cited ongoing economic growth and low unemployment as reasons for potentially delaying interest rate reductions. This statement further heightened uncertainty in the market and may have impacted Bitcoin’s price movements.

Hot Take:

The comments from U.S. Federal Reserve Chair Jerome Powell and Minneapolis Fed President Neel Kashkari have introduced uncertainty to the market and impacted Bitcoin’s price. The lack of interest from leverage longs and the possibility of delayed interest rate reductions have fueled speculation of a potential decline in Bitcoin’s price. Traders and investors will closely monitor any further developments in monetary policy and economic indicators to determine the short-term direction of Bitcoin’s price.

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