Bitcoin (BTC-USD) failed to secure new ground on Thursday, as the market reacted to the final Federal Reserve meeting led by Jerome Powell. The price of the token is currently moving around $76,300, which is a drop of about 2% from its recent high. Investors are balancing a difficult geopolitical situation alongside a central bank that is inflation-hedge-and-warns-it-is-really-hard-to-make-money-in-stocks">taking a harder stance on inflation.
Meet Samuel – Your Personal Investing Prophet
- Start a conversation with TipRanks’ trusted, data-backed investment intelligence
- Ask Samuel about stocks, your portfolio, or the market and get instant, personalized insights in seconds
Powell Delivers a Hawkish Exit
The latest Federal Open Market Committee meeting was described by Nic Puckrin of Coin Bureau as the “most hawkish in years”.
In a rare move that hasn’t happened since 1992, four members of the Federal Reserve dissented against the decision to keep interest rates the same. Analysts noted that the previous goal of a “soft landing” for the economy appears to be gone, as the direction of travel for rates has shifted away from future cuts. Donald Trump reacted to the news on social media by attacking Powell, claiming the Chair was “too late” in helping the economy.
Global Tensions Fuel a $120 Price per Barrel
Energy costs are putting more pressure on the global economy as Brent crude oil (CM:CL) climbed past $120 per barrel. This is the highest price for oil since June 2022. The Kobeissi Letter reported that “Asia is facing its worst ever crisis in history” while Europe is running low on fuel supplies. Experts warn that these rising costs mean that “Inflation is back”.
This trend is driven by the ongoing conflict between the United States and Iran, which Trump addressed by stating that “Iran can’t get their act together” and “They better get smart soon!”.
Whale Accounts Protect Bitcoin’s $75K Floor Price
Large investors are using the current price drop as an opportunity to increase their holdings. Bitcoin has managed to stay above its 21-day simple moving average, which is currently near $76,312.
Moreover, data from major exchanges shows that while smaller traders are selling to reduce their risk, the largest whale accounts are aggressively buying the dip. These investors are likely looking ahead to June, when many expect a change in leadership at the Federal Reserve could lead to a different approach to interest rates.
At the time of writing, Bitcoin’s price is sitting at $76,312.11.
