• Bitcoin prices increased after the Federal Reserve predicted lower inflation for 2023.
• Jerome Powell, the Federal Reserve chair, warned of more rate hikes in the future and that inflation goals may not be met this year.
• In 2022, bitcoin experienced its worst year on record and dropped from an all-time high of $68,000 to around $16,600 by the end of the year.
Good News From The Fed
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. This statement came by way of Jerome Powell, the Federal Reserve chair.
Warning Of Rate Hikes
Powell warned that his organization’s tactics 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, this means house and car sales are set to decline throughout the year as more people will not be able to pay interest on those items.
Bitcoin’s Worst Year On Record
Prior to 2022, bitcoin rose to a whopping $68,000 per unit before dropping into the high $40,000 range over eight weeks losing about $20K. By 2020’s end it had plummeted further down to around $16,600 which caused crypto industry values to fall below $1 trillion when it had been valued at more than $3 trillion just 11 months earlier.
A Bullish Period For Bitcoin
However, recently bitcoin has been experiencing something of a bullish period as it has added about $7000 over recent weeks giving hope back to investors that 2022 can officially be put behind them where it belongs.
Will The Fed Reach Their Goals?
Powell also stated that he doesn’t see inflation goals being hit in 2023 but believes their efforts will likely extend into 2024 which is ironically when USA’s next presidential election takes place.