In late July, the price of bitcoin endured a harsh dip after news came about that the Federal Reserve was on the verge of making another big (and tough) financial decision likely to affect Americans.
Why Can’t the Federal Reserve Chill Out?
For the most part, bitcoin had been trading above $30,000 in July, though things took a nasty turn following the announcement and the world’s number one digital currency by market cap slipped into the $29K range.
Right now, it appears the Federal Reserve is looking to enforce another rate hike of 25 basis points, something that frustrates American traders, though it’s not set in stone yet, and this is only speculation. Still, investors and everyday people can’t help wondering, “Is the Fed really going to make more maneuvers that will wind up making our lives hard?”
The agency has already done enough damage to the economy. 2022 can attest to this given it was constantly marred by the Federal Reserve making rash decisions to heighten interest rates. This was done, according to representatives, as a means of keeping inflation down and allegedly helping the people of the nation, but things took an ugly turn in the long run.
All that really happened was that people’s crypto assets took heavy beatings and they all lost access to the American dream. With interest rates being what they were, they could not afford to take out loans to purchase homes, cars, and other items they would need to provide for themselves and their families.
Yuya Hasegawa – crypto market analyst at Japanese crypto exchange Bit Bank – commented in a recent interview:
Bitcoin is still fluctuating within a narrow range for a little more than a week, and it will likely continue to do so until the conclusion of this week’s FOMC meeting. The market has almost fully priced in another 25-basis point rate hike by the Fed this week and is paying close attention to whether they are going to carry out another by the end of this year as FOMC’s previous economic outlook suggested.
Binance Also to Blame?
He continued with:
We have yet to see June’s personal consumption expenditure… and they will not likely hasten to make the decision to halt rate hikes until they have more data and are more confident that inflation is coming down. This means that FOMC’s rate decisions henceforth will likely continue to be ‘live,’ and bitcoin may not successfully break out of $31,500 for another while.
The sudden drop in bitcoin’s price can also be attested to a new report issued by the Wall Street Journal that suggested Binance and its CEO Changpeng Zhao (which are currently being sued by the SEC) inflated data as part of a “wash trading” scheme designed to make Binance appear more dominant.
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