The price of Bitcoin has fallen below $ 50,000 and is still heading down. But the outcome of a two-day meeting of the US Federal Reserve could reverse it. Markets expect the Fed to announce a sharp change in the direction of monetary policy.
However, if Fed Governor Jerome Powell makes a statement that means a tighter tightening of monetary policy, it could help Bitcoin. The oldest and most popular cryptocurrency has experienced an almost constant decline in recent weeks. While it was still trading for more than $ 67,000 in the first decade of November, it is now 20,000 cheaper. In five weeks, Bitcoin lost about 30 percent of its value.
The bitcoin decline has been exacerbated in recent days by the uncertainty surrounding the Fed‘s monetary policy meeting. The cryptocurrency market thus replicates the behavior of stock markets, where there is also nervousness about waiting for Powell’s verdict.
However, the financial world is actually counting on the end of cheap money in sight. This is due to inflation, which has reached its highest level in the United States since 1982. The Federal Reserve will probably no longer stand idly by and intervene. It’s just a matter of vigor.
