Rhetoric of the head of the U.S. Federal Reserve led to “swings” in the bitcoin market

Bitcoin rose above $18,000, but eventually corrected below that mark.
A few hours before the press briefing by U.S. Fed chief Jerome Powell, the price of bitcoin overcame level of $18,000 and was at a moment high of $18,146,000 in the past month.
Amsterdam Stock Exchange trader Michael van de Poppe, commenting on this surge, noted that against the background of the collapse of the cryptocurrency exchange FTX bitcoin was down from the level of 20 thousand dollars to 15.6 thousand dollars, and that the yield price of the cryptocurrency number one on values above 18 thousand dollars shows the strength of the digital asset as an investment tool.
Meanwhile, the bitcoin price situation has changed dramatically along with the talking points made by Powell. He said that in October-November the decline in inflation in the United States was a “good sign”, but the growth rate of consumer prices was still high, and that the US Federal Reserve would need to act quickly, decisively and continue to raise the rate. All of this was reinforced by the decision to raise the rate this time by 0.5%, although markets on Tuesday said a more moderate interest rate hike was likely.
A harsher rate hike than optimists thought was possible led to a sell-off that was felt across a wide range of stocks on Wall Street. The bitcoin price, which had previously been rising in a daily move of 5%, halted its rise and, after losing its rise above $18,000, entered December 15 at $17,75,000. Once again, the bitcoin price showed correlation with the Nasdaq Composite and S&P 500, which at the time were losing 0.8% and 0.6% respectively.
Meanwhile, the price of gold experienced a very slight decline, only 0.38%, and continues to be at its highest level since early September, $1,818 per troy ounce. This suggests that the level of perceived uncertainty among global investors remains high, and they are looking for hedge assets, in which case bitcoin also falls into the focus of their attention.
It is also worth mentioning that well-known investor Jim Rogers said this week that he sees no reason for a rally in the S&P 500 and Nasdaq Composite and thinks that Wall Street’s stock market will have an even bigger collapse than what happened to them in the time frame since the beginning of this year.

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