How will Macro Headwinds affect Bitcoin (BTC), Weekend Price Gains?
Bitcoin News: Michelle Bowman is a member of US Federal Reserve’s Board of Governors. She said that the most recent CPI data was surprising. Bowman stated that January’s inflation numbers were contrary to the belief that the economy was heading towards disinflation. Economists and market experts have made similar statements this week, which suggests that there is still a long way to go before the Fed pivot to interest rate cuts. Global share markets fell Friday due to a negative outlook for the March Fed rate hike decision.
Also read: Michael Saylor Buys More Bitcoin (BTC), With Microstrategy Fund
The S&P 500 Index is finally in direct correlation to the crypto market, which is now free from the ill-effects of the FTX collapse scenario. The top cryptocurrency closely mirrors S&P 500 Index, which is currently experiencing heavy fluctuations and a net drop in value of 0.75% on Friday.
Analysts at Reuters believe that the Fed will likely pivot to rate reductions within 2023. Global stock markets fell and the US Dollar Index has seen a 0.44% increase in the last five days. This is in anticipation of Fed rate hikes in the coming months. The general sentiment is that the Federal Open Market Committee will continue its monetary tightening stance in near future. The current environment could also extend into next week, putting Bitcoin prices in a tight spot.
BTC has had a rollercoaster week thanks to a series of macro announcements. Overall, the crypto market appears to have overcome fears of US regulatory pressure with a 14% effective increase over the past seven days. According to CoinGape’s price tracker, the BTC price is at $24,162, a decrease of 2.15% over the past 24 hours.
Also read: Charlie Munger, top CNBC host, slams anti-Bitcoin rhetoric
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