The United States Federal Reserve (FED) seems determined to raise interest rates and the price of bitcoin (BTC) responded aggressively lower. The leading cryptocurrency fell below $40K after a day of massive market sell-offs.
Lael Brainard, governor of the FED, assured that it is “essential” for the organization to raise interest rates and reinforce the image of the dollar in international markets. Almost immediately alternative markets like stocks or cryptocurrencies fell.
“ The Federal Open Market Committee will continue to tighten monetary policy methodically through a series of interest rate hikes and beginning to reduce the balance at a rapid pace as soon as our meeting in (early) May , ” explained the statement. Official in a virtual speech before the Minneapolis Fed.
In the crypto market, more than 439 million dollars were settled in less than 24 hours, of which 152 million corresponded to BTC and 103 million to Ether (ETH).
At the same time, the crypto ecosystem is waiting for the new inflationary figures of the American power. In the next few hours there will be news regarding the update of the Consumer Price Index (CPI), and crypto commentators expect it to exceed 10%. In that sense, BTC and the rest of the cryptocurrencies could benefit from the media impact and see a small movement to the upside.