Fed pushes Bitcoin back down

While the largest digital currency had been on an impressive bounce during the past week, this came to an abrupt end on Wednesday evening at the first Federal Reserve meeting chaired by its new chairman, Kevin Warsh. He hinted that the majority of the US central bank is considering a new interest rate hike. That is bad news for technology stocks and Bitcoin, which all dropped in tandem.

Crypto fan

Kevin Warsh kept interest rates at 3.75 percent as was expected, but made it clear that his administration will keep a close eye on rising inflation in detail over the coming weeks and months. According to Warsh, who is known as a true crypto fan and is a Donald Trump nominee, this new wave of inflation (which was mainly caused by the war in Iran) could lead to further interest rate hikes later this year.

Let’s not lose sight of the fact that Bitcoin lost about 16% in the span of a month. Compared to the beginning of the year, the largest digital currency has already dropped about 27%, and by as much as 39% since last year.

The bounce of the past week was very hopeful, but above all, do not lose sight of the fact that we are still looking for confirmation of the Bitcoin bottom.