Hawkish Fed comments push down Bitcoin prices and stocks again

Bitcoin (Bitcoin) And the broader financial market faced a new wave of selling on June 18, after James Brad, President of the Federal Reserve Bank of St. Louis, commented, Means He expects the first interest rate hike to occur at the end of 2022.

Brad’s remarks are more hawkish than the remarks of Federal Reserve Chairman Jerome Powell on Wednesday, who said that the rate hike will take place in 2023. As the U.S. dollar strengthened, Powell’s remarks triggered a sell-off in the entire financial market.

Dollar currency index. 4 hours chart. source: Transaction view

Data from Cointelegraph Markets Pro with Transaction view It shows that as the U.S. dollar strengthened, Bitcoin bulls were overwhelmed by sellers, triggering a drop to a daily low of $35,129.

BTC/USDT 4-hour chart. source: Transaction view

The unified sell-off of various assets including stocks, gold and cryptocurrencies further weakened the claim that Bitcoin is an unrelated asset, because the data shows that the correlation between BTC and gold and stocks has been Continue to increase throughout 2021.

Traditional markets closed down this week

The traditional market close on Friday marks one of the worst weeks for the Dow Jones Index Since October After the index fell for five consecutive trading days, the total decline this week was 3%.

The S&P 500 and Nasdaq also suffered heavy losses on Friday, closing down 1.31% and 0.92%, respectively, while the 10-year US Treasury fell 4.04% due to the strengthening of the US dollar.

As for the reasons behind the Fed’s recent tough stance, Brad tip As the economy reopened after the Covid-19 lockdown, inflation levels were higher than expected.

Brad said:

“We are looking forward to a good year and a good reopening. But this year is bigger than we expected, and inflation is more than we expected. I think we are more inclined to be hawks here to control inflation pressure. naturally.”

Brad said that future inflation “will reach 3% this year, 2.5% in 2022, and then return to the Fed’s 2% target.”

Altcoin prices plummeted

As market volatility intensified, traders once again fled to the safe zone of stablecoins, and the price of altcoins fell together with Bitcoin on Friday.

Daily cryptocurrency market performance. source: Coin 360

Ether (Ethereum) Fell more than 13% to a low of US$2,137, while Amp (AMP) fell 33% from its all-time high of US$0.1211 set on June 16.

related: After the price of Bitcoin fell to nearly $35,000, the bulls hesitated to buy on dips

Among the top 200 tokens, the two best performers on the day were ZKSwap (ZKS), and Gnosis (GNO) rose by 14% and 7.4%.

The overall cryptocurrency market value is now 1.486 trillion U.S. dollars, and Bitcoin’s dominance rate is 44.8%.

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