Business News Asia
Bitcoin is rallying above $20,000 as speculative buyers after the previous price drop amid concerns about the Federal Reserve (Fed) rate hike.
The bitcoin price rose 2.99% this morning to $20,254.95.
Investors are concerned that the Fed’s accelerated rate hikes and balance sheet reductions could strain market liquidity and push the U.S. economy into a deep recession.
Bitcoin had earlier slipped below the $20,000 mark after Federal Reserve Chairman Jerome Powell said the Fed would continue to raise interest rates to curb inflation.
Powell said the Fed’s job of fighting inflation is not over. The Fed will continue to tighten monetary policy, which could affect economic growth and the U.S. labor market.
After completing its rate hike measures, the Fed will keep interest rates at a high level for some time. This contrasts with market expectations that the Fed will start cutting rates next year.
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Tuesday, August 30, 2022