Cryptographic market this morning Bitcoin (CRYPTO: BTC). Unable to maintain $ 40,000 level. Concerns over a 50 basis point rate hike grew after Federal Reserve Chairman Jerome Powell commented last Thursday. “It’s appropriate to move a little faster,” he said. This is an important change in the direction of the Federal Reserve’s strategy. Instead of steadily raising interest rates at 25 basis points this year, he talked about what the FOMC is doing. We are willing to raise interest rates faster and reach our 2-2.5% target at a faster pace. This means that the next FOMC meeting, which will take place May 3-4, is very likely to raise rates by 50 basis points. It is clear that the Federal Reserve is taking this positive stance, as US consumers are still spending significant amounts of money, which is a surprise after the Russian-Ukraine war. There are more hawkish Federal Reserves that can cause further distress to the global market in the short term, but I still think they are cautiously bullish. This is because the news is already quite priced, as the market was already expecting a 50 basis point rate hike before Jerome Powell’s announcement last week. This could lead to an event to buy facts on the day of the FOMC meeting from May 3rd to 4th.
Despite the Fed-like Federal Reserve, the indicators on the Bitcoin chain are bullish in contrast. According to Glassnode data, the percentage of Bitcoin supply that has not moved for a year is the highest ever. This data is being distributed by those who consider Bitcoin to be a risk-on asset to long-term holders who are strongly confident in the long-term potential of Bitcoin while these macro headwinds continue. I think it shows. In relation to the CBDC, I think they will be important catalysts for the mainstream adoption of cryptocurrencies.
This article was submitted by an outside contributor and may not represent Benzinga’s views or opinions.