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Bitcoin Price Prediction as Fed Chair Powell Says May Be a Couple of Years Before Rates Can Be Cut – Will BTC Crash to $20,000 Soon?

Bitcoin Price Prediction as Fed Chair Powell Says May Be a Couple of Years Before Rates Can Be Cut – Will BTC Crash to $20,000 Soon? WikiBit 2023-06-12 19:26

As Bitcoin continues its volatile journey, the latest statement from Federal Reserve Chair Jerome Powell has sparked concerns among investors.

As Bitcoin continues its volatile journey, the latest statement from Federal Reserve Chair Jerome Powell has sparked concerns among investors.

Powell's remarks suggesting that it may be a “couple of years” before interest rates can be cut have left many questioning the future trajectory of Bitcoin's price.

With this uncertainty looming, there are growing speculations about a potential crash that could drive Bitcoin's value down to $20,000.

As the crypto market eagerly awaits further developments, the question remains: Will Bitcoin face a significant downturn in the near future?

US Federal Reserve Holds Interest Rates After 10 Consecutive Increases; More Hikes Expected

The US Federal Reserve has chosen to maintain the federal funds rate at its current level this month, following a string of 10 consecutive rate hikes since March 2022.

The decision reflects positive economic indicators, including job gains and low unemployment rates, while the Fed's focus remains on reducing inflation to the target range of 2% to 3%.

Although inflation has moderated, with the annual rate at 4%, the Fed aims to achieve 2% inflation and full employment.

While the announcement led to stock market declines, gold, and silver prices rose. Fed Chair Jerome Powell indicated that more rate increases are likely by year-end, disappointing crypto market participants hoping for a rally.

The “hawkish pause” suggests future rate rises, impacting crypto markets already facing declining liquidity.

Binance Crypto Exchange Near Compromise Between the US and SEC to Avoid Asset Freeze

The world's largest digital asset exchange, Binance, and its US affiliate, Binance US, have agreed to negotiate a settlement that would avoid the need for the court to decide whether or not to order the platform's assets to be frozen.

US District Judge Amy Berman Jackson stated at a hearing on Tuesday that the exchange and the Commission “aren't that far apart” on a settlement that would guarantee the protection of client cash totaling billions of dollars without jeopardizing the cryptocurrency industry.

The judge concluded that closing the exchange “would create significant consequences not only for the company but for the digital asset markets in general.”

According to the SEC lawsuit, Zhao's company, Binance, moved client monies, then utilized those funds to acquire and sell cryptocurrencies.

The exchange's compromise calls for transferring users' cryptocurrency holdings to new wallets under the management of Binance employees stationed in the US.

Similar demands that Binance return client funds to the United States are made by the SEC.

Bitcoin Price Prediction

Bitcoin's technical analysis reveals interesting patterns. On the 4-hour timeframe, we observe a significant decline, followed by signs of a potential reversal.

The formation of a hammer candlestick and exhaustion among sellers indicated by three black crows suggest a weakening bearish sentiment.

Furthermore, an engulfing bullish candlestick pattern indicates growing buyer influence.

Bitcoin Price Chart - Source: Tradingview

Taking a broader view, Bitcoin has completed a retracement of approximately 23.6% around the $25,150 level.

A break above this level could expose Bitcoin to the 38.2% retracement level at around $25,400, potentially paving the way for further resistance at $25,580 or $25,800, which correspond to the 50% and 61.8% Fibonacci retracement levels.

Notably, the $25,450 level, coinciding with the 50-day exponential moving average, has served as both support and resistance in the past.

Conversely, initial support is anticipated around the $24,750 level.

However, a break below this level may lead to a downward movement toward subsequent support levels at $24,285 or the psychological level of $24,000.

Top 15 Cryptocurrencies to Watch in 2023

Stay updated on the newest initial coin offering (ICO) ventures and alternative cryptocurrencies by regularly exploring our meticulously chosen assortment of the top 15 digital assets to monitor in 2023.

This thoughtfully curated compilation has been put together by industry professionals from Industry Talk and Cryptonews, guaranteeing that you receive expert recommendations and valuable insights.

Remain ahead of the curve and explore the possibilities of these cryptocurrencies as you navigate the dynamic realm of digital assets.

Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.

Disclaimer:

The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.

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