FOMC Inflation Numbers Pull Bitcoin below $70K

Bitcoin (BTC) has dropped below $70K to $69,477 (BTC/USD) after the FOMC meeting showed that inflation is holding fast and prices are up.

The leading cryptocurrency token Bitcoin has been struggling for weeks to get back up above $65,000, and it surged to $71,503 on Monday. The coin started to fall by Tuesday, though, ahead of the FOMC meeting as analysts expected bad news from the Federal Reserve.

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The Fed has voted unanimously to hold off on interest rate cuts for now, keeping them at a historic high of 5.25%-5.5%. Several members expressed concerns that the Fed policy would have to be tightened further if they continued to see stubborn inflation data and increasing prices.

The overall hawkish sentiment of the Fed has had an adverse effect on the crypto market and the stock markets.

Bitcoin Outlook after FOMC Meeting

With inflation high and holding tight at 3.4%, Bitcoin is going to have a tough climb to get very far past $70,000. What will help is if the spot EFTs are approved by the United States Securities and Exchange Commission. That could breathe new life into the crypto market and draw more public interest to Bitcoin.

Spot ETFs are designed to be safer than traditional cryptocurrency because of how easy it is to track their value. Each day, shares can be made and then redeemed. That is designed to help balance out supply and demand. As a safer bet than traditional blockchain currency, spot ETFs could be the future of cryptocurrency.

But poor economic sentiment will hold Bitcoin back, and we expect that the coin will not be able to hit $75,000 in the next two weeks. Investors may want to sit tight on their Bitcoin and wait for inflation news at ease before trading in their tokens. Bitcoin’s trade volume has dropped further today from yesterday’s low, down another 9.3%.

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ABOUT THE AUTHOR See More
Timothy St. John
Timothy St. John
Financial Writer - European & US Desks
Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.
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