Bitcoin and Ethereum Slip as U.S. Fed Chair Powell Predicts Higher Interest Rates
Bitcoin and Ethereum have both slipped in value following comments made by U.S. Federal Reserve Chair Jerome Powell during his testimony in front of the Senate Banking Committee on March 7. Powell stated that he expected interest rates to be higher than previously anticipated, causing both cryptocurrencies to drop in value.
Bitcoin fell below the $22,000 level on March 8, dropping to a low of $21,964.99. This followed a breakout of a key support point at $22,300, which coincided with the relative strength index (RSI) falling from a floor of its own at 42.00. As of writing, the index is now tracking at…
Ethereum also slipped in value following Powell’s comments, dropping to a low of $1,697.47 on March 8. The cryptocurrency had previously been trading at a high of $1,800.00.
The news comes as investors continue to monitor the impact of rising interest rates on the cryptocurrency market. While some analysts have suggested that higher rates could lead to increased demand for cryptocurrencies as a hedge against inflation, others have warned that rising rates could lead to a decrease in demand for riskier assets like cryptocurrencies.
Despite the recent drop in value, both Bitcoin and Ethereum remain up significantly year-to-date. Bitcoin is currently up over 70% since the start of the year, while Ethereum has gained over 130% in value over the same period.
Investors will be closely watching the market in the coming days to see how cryptocurrencies respond to Powell’s comments and any further developments in the global economy.
