Fed President James Bullard triggered Bitcoin’s rate fall
The President of the United States Federal Reserve Bank in St. Louis, James Bullard, said he expects the first-rate hike in late 2022. After that, Bitcoin (BTC) and other financial assets plummeted in value on June 18.
This was due to the fact that such statements influenced the strengthening of the US dollar.
As the dollar strengthened, Bitcoin bulls were overwhelmed by sellers, according to TradingView. This triggered a drop in the price of Bitcoin to a daily low of $ 35,129.
The close on Friday marked the end of one of its worst weeks. The Dow Jones is down 3% this week. The S&P 500 and NASDAQ closed the day with a 1.31% and 0.92% drop, respectively. 10-year Treasury bonds fell 4.04%.
Bullard added that this attitude of the Fed is due to an attempt to contain the increase in inflation in the United States after the relaxation of the quarantine due to Covid-19.
In his opinion, inflation will reach 3% this year, and in 2022 it will reach 2.5%, before falling again to the Fed’s target of 2%.
On Friday, June 18th, altcoin prices dropped alongside bitcoins. Volatility increased in the market, and traders were once again saved by the security of stablecoins.
The price of Ether (ETH), according to Coin360, fell more than 13% to a low of $ 2,137. AMP fell – 33%.
The only positive results on Friday were from ZKSwap (ZKS) with a 14% gain and Gnosis (GNO), which was up 7.4%.
But experts are still optimistic and believe that the recent fluctuations in the cryptocurrency market will not prevent Bitcoin from returning to the course of increasing its value.