Bitcoin price whipsaws as Fed says rate hikes may not be 'appropriate'

Bitcoin (BTC) saw dense volatility connected March 22 arsenic the United States Federal Reserve hinted that it whitethorn halt involvement complaint hikes.

BTC/USD 1-hour candle illustration (Bitstamp). Source: TradingView

Powell connected rates: "'May' and 'some' alternatively of 'ongoing'"

Data from Cointelegraph Markets Pro and TradingView showed crisp moves some up and down for BTC/USD arsenic the Fed hiked by an anticipated 25 ground points.

During an ongoing press conference, Fed Chair Jerome Powell appeared to play down the ongoing U.S. banking situation and its aftermath, portion hinting that the day's involvement complaint hike whitethorn beryllium the last.

Powell said successful prepared remarks the Fed believes that "events successful the banking strategy implicit the past 2 weeks are apt to effect successful tighter recognition conditions for households and businesses, which would successful crook impact economical outcomes."

"It is excessively soon to find the grade of these effects, and truthful excessively soon to archer however monetary argumentation should respond," helium stated.

"As a result, we nary longer state, that we expect that ongoing complaint increases volition beryllium due to quell inflation. Instead, we present expect that immoderate further argumentation firming whitethorn beryllium appropriate."

BTC/USD initially saw section lows of $27,867 connected Bitstamp astir the events earlier returning to commercialized supra $28,000, lone to proceed falling astatine the clip of penning arsenic markets continued to digest Powell's responses to property queries.

On complaint hikes specifically, helium said that the presumption "may" and "some" arsenic opposed to "ongoing" would beryllium champion to picture aboriginal policy.

Markets taking Fed determination arsenic somewhat dovish arsenic guardant guidance connection makes intermission successful May much likely. Fed present says that “some further pol firming whitethorn beryllium appropriate.” This is downgrade from anterior statement. Dollar drops, Gold, Bitcoin, stocks rise, Yield curve steepens. pic.twitter.com/5jpIbunveI

— Holger Zschaepitz (@Schuldensuehner) March 22, 2023

Reacting, immoderate commentators nevertheless described Powell's Fed arsenic "hawkish" successful placing ostentation supra the banking situation by continuing hiking.

"The Fed person shown frankincense far, that they are committed to rates higher for longer + ostentation arsenic force #1," Tedtalksmacro wrote successful portion of Twitter follow-up.

BTC terms comes afloat circle

Bitcoin frankincense did not present the travel to $30,000 which some had hoped for successful the run-up to the complaint hike decision.

Related: Will the Fed halt complaint hikes? 5 things to cognize successful Bitcoin this week

"Shorts liquidated past longs liquidated. Back to the aforesaid terms we were an hr ago," expert Matthew Hyland summarized.

Data from monitoring assets Coinglass enactment the full crypto liquidations for the time astatine $36 cardinal and $78 cardinal for shorts and longs, respectively.

Crypto liquidations chart. Source: Coinglass

The views, thoughts and opinions expressed present are the authors’ unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph.