Breaking: Crypto Market Falles After US Fed’s Williams Support 5-5.25% rate Hike
The wider crypto market lost earlier gains because the U.S. Federal Reserve Bank of New York President John Williams said that rates forecasts by Fed officials for 2023 in a range between 5 to 5.25% are still reasonable.
Bitcoin price fell more than 2% after John Williams’ comment. The current price of Bitcoin is $22,795.
John Williams, President of the US Fed, Forecasts Peak Rates of 5.25%
Federal Reserve Bank of New York President John Williams stated on February 8 that financial conditions are roughly in line with the likely outlook of monetary policy. The U.S. Federal Reserve plans to raise the inflation target to 2.2%.
During a moderated discussion with Wall Street Journal in New York, “My view is that it still seems to be a very reasonable view on what we need to do this year to get supply and demande in balance and bring down inflation,” he stated.
Officials at the U.S. Fed predicted a rate increase of up to 5.1% by 2023. He stated that most Fed officials still believe rates will be in the 5-5.25% range.
In response to cooling inflation and good jobs data, the U.S. Fed raised interest rate by 25 bps to 4.5% to 4.75% last Wednesday. Williams believes that future rate increases will depend on the incoming data. The Fed pivot is not relevant at the moment, as inflation must drop further.
Lower Crypto Market Resonates
Bitcoin prices fell by more than 2% from their previous high of $23.3K to close to $22.7K. The current price is $22,830. The U.S. Dollar Index (DXY), jumps higher to 103.50 because the Fed is likely continue raising interest rates in this year.
The wider crypto market followed suit, with altcoins like Ethereum, Dogecoin Cardano Shiba Inu and Cardano all falling over 2%. The Ethereum price traded at $1,633, 2% down from the 24-hour high $1,688
Also read: Top 5 AI Crypto Tokens & Projects That Will Skyrocket in 2023
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