Bitcoin

Bitcoin And US Stocks Slightly Lower When The Fed Chairman Testified

Bitcoin (BTC) turns around once again as US stocks fall amid US Federal Reserve (Fed) determination to curb inflation.

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US stocks fell slightly in Wednesday’s trading session (June 22) as the market struggled to maintain the recovery momentum. Investors are also looking at Powell’s reiteration of the Fed’s anti-inflation stance.

Growing fears of a recession on Wall Street recently weighed on stocks. Fed Chairman Jerome Powell has told Congress the central bank is “determined” to rein in inflation, which has soared to a 40-year high.

According to a recently released transcript of testimony, Powell stated:

“We are strongly committed to bringing inflation back down, and we are moving expeditiously to do so. We have both the tools we need and the resolve it will take to restore price stability on behalf of American families and businesses. It is essential that we bring inflation down if we are to have a sustained period of strong labor market conditions that benefit all.”

Powell added that the Fed will stay on track until it sees “compelling evidence that inflation is falling.” The Fed raised rates by 0.75% last week and signaled similar rate hikes could be made at its next meeting.

Fed interest rate chart. Source: US Federal Reserve

Data from TradingView shows BTC/USD hovering near $20,500 at the Wall Street open. Bitcoin dipped below $19,700 yesterday before recovering to $20,700 for now. However, it is still down from the previous day’s high of $21,700.

BTC daily chart. Source: CoinCu

Many analysts continue to point out that Bitcoin could retest lower levels, especially in the $16,000 region.

Trader and analyst, Rekt Capital, also highlighted concerns about low trading volumes during the upside move, urging Twitter followers not to put too much faith in the strength of the rally.

The current market sentiment is still in the extreme fear zone, however, it has shown signs of improvement compared to last week. The Fear and Greed Index is flat at 11, up 4 points since Bitcoin bottomed over the weekend. This shows that user sentiment is gradually improving.

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DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.