Selling pressure in the Markets intensifies as Federal Reserve raises interest
The Federal Reserve raised interest rates on March 22nd, causing selling pressure in the markets, including a drop in Bitcoin's price by over 2%, but some analysts remain optimistic about its future.
On March 22, the Federal Reserve raised interest rates by a quarter percentage point, marking the ninth such hike since March 2022. Chairman Jerome Powell said the rate hikes are nearing an end, but cautioned about the recent banking crisis and stressed the Fed's commitment to restoring price stability and bringing inflation back down to its 2% target. Powell acknowledged that the recent developments in the US banking system could lead to tighter credit conditions, but said he does not expect rate cuts any time soon.
While the rate hike was expected, the markets did not absorb the Fed's decision of continued monetary tightening well. The top three Wall Street indices dropped to the tune of 1.6% in the wee hours, and some selling pressure ensued in the crypto space. Bitcoin dropped by more than 2% and is currently at $27,742, following the Nasdaq 100, which dropped by a similar magnitude on Wednesday. Altcoins have also come under similar selling pressure.
Despite the drop, some analysts remain optimistic about Bitcoin's future. The cryptocurrency has had a phenomenal rally this year and over the last week, emerging as a trusted destination for investors as cracks appear in the traditional banking sector. Some analysts expect Bitcoin to touch $30,000 and even move further to $35,000 by the year's end.
