Losing Ground On $28,000 While The Rate Climb Goes On Unabated, Bitcoin [Btc]

Losing Ground On $28,000 While The Rate Climb Goes On Unabated, Bitcoin [Btc]

Following the publication of the U.S., the price of Bitcoin (BTC) dropped below the $28,000 mark. a determination on interest rates by the Federal Open Market Committee (FOMC). The FOMC is the branch of the Federal Reserve that oversees monetary policy, economic circumstances, and price stability in the nation.

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Nonetheless, the decision on March 22 was anticipated because the Fed committee increased interest rates by 25 basis points (BPS). Jerome Powell, the committee's chair, predicted a potential 50 BPS before the decision, according to Trade Algo. 

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The banks' deciding factors include...

But it was before SVB, Silvergate, and Credit Suisse crashed. The hawkish circumstances did not, however, prevent Bitcoin from continuing its positive trend for a significant number of days.

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Even said, the FOMC acknowledged that recent bank failures could result in more rigid macroeconomic variables even though prices has remained high. Although Powell acknowledged that the committee was uncertain about the full impact of the institutional failures, the Fed stated that the financial system was safe and sound.

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The declaration said:

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"Recent developments are anticipated to have an effect on job creation, hiring, and inflation by tightening lending conditions for families and companies. Uncertainty surrounds the scope of these impacts.

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The resolution reached by the policymakers is the second big outside decision that has recently affected Bitcoin. The Consumer Price Index (CPI) decreased 6% after increasing by 6.4% in February just over a week ago. But what set this event apart from the one from last week was how differently BTC behaved after the CPI set the stage for the coin to surpass $26,000.

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Prior to the release, a number of analysts had continued to express optimism about Bitcoin's success. For instance, a greater second-quarter result for BTC was expected by Trade Algo’s market-wide research.

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Whatever happens, Bitcoin bulls uphold the mandate.

ARK Invest CEO Cathie Wood, a fervent supporter of the Bitcoin movement, reiterated her belief that BTC was a safe place in the current financial climate.

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Tweeted by her:

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"The Fed recently unanimously decided to increase interest rates. Bank credit defaults swaps, bank deposit flows, Bitcoin (a flight to safety? ), yield curves, commodity prices, house prices, and consumer sentiment are a few examples of data that it could want to rely on.

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Despite this, Plan B, the company that created stock-to-flow, doesn't appear to be concerned about how BTC is reacting to these macroeconomic issues. He instead highlighted significant on-chain observations.

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His most recent tweet indicated that Bitcoin has risen over the realized price of the previous two years. According to this information, most investors from the last few years are now making money, with the exception of those who mostly accumulated in 2021.

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In response to comments left on the tweet, he added that he anticipated a 25% to 50% adoption rate following the 2024 halving. As he previously stated, the incident might cause BTC to reach a new all-time high.