Bitcoin Rises to The $40,000 Level As the Federal Reserve Considers Raising Interest Rates

Bitcoin rises to the $40,000 level as the Federal Reserve considers raising interest rates

Following a 15% decrease in 24 hours, Bitcoin has recovered to retake the $40,000 level. According to CoinMarketCap, the leading cryptocurrency is currently trading at $40,142, down 3.37% on the day.

Bitcoin has suffered in recent weeks as a result of record-high inflation and continuing geopolitical instability, as the Federal Reserve began raising interest rates in response.

Inflation in the United States is expected to have risen to 8.4% in March, according to an economist’s survey. This is the highest rate since early 1982.

According to Jan Hatzius, Chief Economist of Goldman Sachs Group Inc., the Federal Reserve may be forced to raise interest rates “much” higher than expected to stabilize an unsustainable US economy.

Bitcoin is dropping rapidly in just one day, from the $43,000 level to $39,200.

The crypto trading analyst Michaël van de Poppe highlighted that the $40,000 mark is a crucial level for BTC, “while equities are also still dropping. Let’s see. I’d like to see a reaction here. Other crucial levels if lost; $38K Sub $33K.”

Previously, on March 14, Tesla billionaire Elon Musk shared via Twitter that he “still own & won’t sell” his Bitcoin, Ethereum and DOGE in the high inflation situation. Furthermore, he gave his advice during the sensitive period: “It is generally better to own physical things like a home or stock in companies you think make good products, than dollars when inflation is high.”

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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