Bitcoin fell in price amid the US Federal Reserve’s statement

On Thursday, November 14, US Federal Reserve Chairman Jerome Powell said that further interest rate cuts may not be forthcoming. Following this announcement, the bitcoin market BTC $91,003.48 Bitcoin -0.45% Market capitalization $1.8 trillion VOL. 24 hours $2.22 billion dropped by almost 3%.

It is worth noting that participants in the cryptocurrency and financial markets, on the contrary, expected a decrease in interest rates.

«The economy is not giving any signals that we should rush to cut rates,» Powell said.

It is noted that this statement was made after the last two rate cuts. They took place in September and November by 50 and 25 basis points, respectively.

It is noted that the next Fed rate decision will be announced on December 18.

After the statement of the American official, the price of bitcoin dropped by about 2.79% to $ 86,979.

At the time of writing, the bitcoin rate was $ 88,102, the market capitalization was $ 1.74 trillion, and daily sales stopped at $ 82.30 billion.

According to experts, investor confidence in the possibility of a rate cut weakened in December. Thus, the probability of a 25 basis point rate cut has dropped to 59%.

As you know, bitcoin investors are closely monitoring possible changes in the Fed’s interest rate. Lower rates make traditional assets, such as bonds and time deposits, less attractive.

This encourages investors to look at riskier and alternative investments, such as bitcoin and tech stocks.

Earlier, it was reported that many cryptocurrency experts and analysts predict bitcoin’s growth to $ 100,000. However, before that, the leading cryptocurrency is expected to fall to $ 73,000 or even $ 58,000.