Bitcoin falls below $ 22,000, as Powell suggests further interest rate increases

Bitcoin falls below $ 22,000, as Powell suggests further interest rate increases

The US Federal Reserve said that it is preparing to further increase interest rates if the situation requires such drastic measures, said the organization chairman, Jerome Powell.

Bitcoin reacted with an immediate drop in price, which drove it down by around $ 400 within minutes.

• Most of the financial markets, especially crypto, had calmed down in the recent days in the expectation of Jerome Powell's statement before the congress on the impending money plans of the central bank.
• The Fed chairman spoke to the Senate Banking Committee on Tuesday and indicated that the organization would probably increase the key interest rates more than previously expected. This is in contrast to what most experts believed, since the general assumption was that the Fed will not press the interest.

"The latest economic data are stronger than expected, which indicates that the final level of interest rates will probably be higher than before" - noticed Powell.

• The comments of the Fed chairman broke through the stagnation on the cryptocurrency market. As already reported, BTC had stalled at around $ 22,400 and did not make any great movements for days.
• But shortly after Powell's warning, Bitcoin fell over $ 400 and slipped under $ 22,000 to mark a three-week low.

BTCUSD. Tradingview

• It is worth noting that there are further events and announcements from the USA this week that could lead to further price fluctuations.

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