Bitcoin News: Michelle Bowman, a member of the Board of Governors of the US Federal Reserve, said the recent CPI data has been surprising. Bowman made the comment stating that the January inflation numbers proved to be against the belief that the economy was on the way to disinflation. Similar statements have been coming this week from market experts and economists, indicating there is a long way before the Fed pivot of interest rate cuts are seen. Hence, an unfavorable outlook for the March Fed rate hike decision is reflecting in the decline in global share markets on Friday.
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The crypto market, which is finally devoid of the ill-effects from the FTX collapse scenario, is finally in direct correlation with the S&P 500 Index. The top cryptocurrency is closely mimicking S&P, which is currently showing heavy fluctuations with a net drop of 0.75% on Friday.
Bitcoin To Dip With Macro Dampening?
According to Reuters analysts, the possibility of the Fed’s pivot to rate cuts within 2023 is a forgone case. Stocks dropped globally and the US Dollar Index (DXY) has been on a 0.44% rise in the last five days, in apparent anticipation of further rate hikes by the Fed in the coming months. Overall, the larger sentiment is that the Federal Open Market Committee (FOMC) would continue with its monetary tightening stance in the near future. This puts Bitcoin price in a fix as the current environment could likely extend to next week as well.
It has been a roller coaster week for BTC thanks to a flurry of macro announcements. Overall, the crypto market seems to have overtaken fears of regulatory pressure in the US, with around 14% effective rise over the last seven days. As of writing, BTC price stands at $24,162, down 2.15% in the last 24 hours, according to CoinGape price tracker.
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