•Bitcoin is currently trading below $23,000 after hovering for a while.
•Federal Reserve Chairman, Jerome Powell recently made comments about still trying to bring inflation under control.
•The rise of Bitcoin, starting from its inception in 2008, has been remarkable due to its decentralized and digital currency based on blockchain technology.
Bitcoin Struggles To Remain Above $23,000
Bitcoin is back to trading below $23,000 after hovering there for a while. The token’s unreliability in volatile performance has put investors in a tough spot to predict its near future. Here’s a closer look at what’s up with the frontrunner crypto.
Powell Saves Bitcoin From A Downfall
Federal Reserve Chairman, Jerome Powell recently made comments saying that the Fed is still trying to bring inflation under control and that the disinflationary process is in the early stages. This provided some reassurance to investors since the news of the US unemployment report a week back had caused serious tension in the market, leading to a decline in the price of cryptocurrencies. He further added that if there is a decline in the number mentioned by the inflation reports, or the labour markets continue to be strong; the Fed may have a reason to raise interest rates further. However, the process of disinflation won’t be quick, nor any less painless. And there is a possibility for the reversal of terminal-level interest rates.
Analysis Of Bitcoin Performance
Pushing on the same predictions, Naeem Aslam said that the interest rates can no longer be expected to stay between 4.75 – 5%. Naeem is a chief market analyst at AvaTrade, and believes that the interest rates could go up to 5.25%. These comments, however, received some criticism from Michael Hewson director of analysis at CMC Markets. Apart from this other factors such as sale of Grayscale have caused discomfort when it comes trust in Bitcoin and its price behaviour seems rests only on headlines now days..
Rise And Fall Of Bitcoin Throughout History
The rise of Bitcoin since its inception in 2008 has been nothing short of remarkable due introduction decentralized digital currency based on blockchain technology through white paper by Satoshi Nakamoto .On January 2009 first block was mined marking birth new age cryptocurrency which continues till now with soaring prices over years .Since then bitcoin has become one most valuable asset class and continues make all time highs beyond $24000 .
Conclusion
Investors are advised carefully consider implications Federal Reserve Chairman’s recent comment along with other factors before making investment decision regarding bitcoin , moreover also keep track past performances as well .
