Bitcoin Takes Reassurance With Jerome Powell’s Comments Wall Street
The price of bitcoin rebounded with the stock markets on Wednesday evening, despite the Fed’s monetary tightening. The Federal Reserve unsurprisingly raised its key rates by 50 basis points and announced that the central bank’s balance sheet will start to be reduced in June by $47.5 billion a month, then by $90 billion a month from of September.
Bitcoin rebounded more than 5% yesterday and the Nasdaq 3.5% after being reassured by Jerome Powell’s comments on the pace of rate hikes. The Fed Chairman ruled out a rate hike of more than 50 basis points in upcoming meetings, allaying fears of too rapid monetary tightening.
The Fed and other central banks will, however, continue to normalize their monetary policy quickly in a slowing global economy, which remains a very threatening environment for traditional risky assets, as well as more exotic ones such as cryptocurrencies. The outlook therefore remains basically negative despite the possibility of a short-term rebound.
Bitcoin price daily chart – key levels