The price of bitcoin went up a bit in early February after it was announced that the Federal Reserve was predicting decreased inflation for 2023. Bitcoin Jumps Following Positive Fed Remarks The words came by way of Jerome Powell, the Federal Reserve chair. He stated in an interview: We expect 2023 to be a year of significant declines in inflation. It’s our job to make sure that that’s the case. My guess is it will take certainly into not just this year, but next year to get down close to two percent. His statement did not come without a slight hint of gloom and doom. He warned that the tactics the organization was using could mean more rate hikes in the coming months, meaning more individuals are likely faced with a future where they cannot enjoy the American dream.
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The price of bitcoin went up a bit in early February after it was announced that the Federal Reserve was predicting decreased inflation for 2023.
Bitcoin Jumps Following Positive Fed Remarks
The words came by way of Jerome Powell, the Federal Reserve chair. He stated in an interview:
We expect 2023 to be a year of significant declines in inflation. It’s our job to make sure that that’s the case. My guess is it will take certainly into not just this year, but next year to get down close to two percent.
His statement did not come without a slight hint of gloom and doom. He warned that the tactics the organization was using could mean more rate hikes in the coming months, meaning more individuals are likely faced with a future where they cannot enjoy the American dream. With rate hikes set to expand even higher, that means house and car sales are set to decline throughout the year as more people will not be able to pay the interest on those items.
He also said that he doesn’t see inflation goals being hit in 2023. While much of the work is set to be done this year, he predicts that the agency’s efforts will likely expand into 2024. How ironic… the year of the USA’s next presidential election. Are we witnessing a theme here, yet?
Bitcoin experienced its worst year on record in 2022. Prior to that, the world’s number one digital currency by market capitalization rose to a whopping $68,000 per unit, a new all-time high for everyone’s favorite crypto. However, things took a turn for the worse just a couple months later when the asset dropped into the high $40,000 range, thus losing about $20K over the course of eight weeks.
From there, the asset continued to fall into oblivion, and by the time 2022 came to an end, bitcoin was trading at around $16,600, more than 70 percent below its all-time high. Many other forms of crypto also chose to follow in the asset’s footsteps and lose value as well. This caused the crypto industry to fall below $1 trillion when it had been valued at more than $3 trillion just 11 months earlier. It was a sad and ugly sight to see.
Now, however, bitcoin has been enduring something of a bullish period as the currency has added about $7,000 to its price over the last few weeks, thus giving hope to investors that 2022 can officially be put in the past where it belongs.
Will This Be a Slow Process for Everyone at the Fed?
Jerome Powell also stated:
This process is likely to take quite a bit of time. It’s not going to be smooth. The biggest challenge we face at the Fed is getting inflation down to two percent.