February 5, 2023

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Bad news from the US gives Bitcoin a tick down

Bad news from the US gives Bitcoin a tick down

Bitcoin price had an amazing start to 2023, but hit a small bump yesterday. Of course you can’t expect it to be all green and hosanna from now on. Ultimately, even though we are in a potential bullish market, markets continue to move in waves.

What is going on?

The bad news started yesterday Notice US Department of Justice. They suddenly announced a press conference Introducing projects To regulate the crypto industry internationally. The desire to introduce tougher regulations no doubt stems from last year’s breakout of Terra and FTX, among others.

It’s time for legislators to clarify in this area, and the U.S. Department of Justice seems willing to take the lead. As a result, markets fell briefly, and it is still unclear what this means. Additionally, some negative news came out from the Reserve Bank.

Stern Jim Bullard

Jim Bullard is the president of the St. Louis Federal Reserve, a key part of the US central bank. Bullard has frequently issued what he calls hawkish statements about U.S. interest rates in recent months. If a person wants to tighten the central bank’s monetary policy, for example higher interest rates than the market expected, we call someone or his statements a hawk.

In Bullard’s case, this time it meant a proposal for a 0.50 percent rate hike in February. It’s too far for the market to count right now. Expectations for the next Federal Reserve interest rate meeting on February 1 are for a 0.25 percent hike or no change in interest rates.

If it’s up to Bullard, none of these expectations will materialize and the Federal Reserve will opt for a 0.50 percent interest rate hike. That would be a blow to the market, but given the recent drop in inflation, it’s unlikely he’ll get his way. That doesn’t change the fact that we have to take people like Bullard very seriously, and that’s immediately reflected in racing.

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