The crypto market is down today as Bitcoin and stocks correct and investors await Powell’s comments on the size of the next interest rate hike and the health of the US economy.
The crypto market is down today, as market volatility increases ahead of the Feb. 1 post-Federal Open Market Committee (FOMC) presser where Fed Chairman Jerome Powell will talk about the upcoming interest rate hike and his views on the United States economy.
After jumping to new highs for 2023, Bitcoin
BTC
$23,542
, which pumped 43% in January, and Ether
ETH
$1,631
retraced a portion of their recent gains. The primary downside catalyst appears to be investors’ apprehension over the upcoming FOMC decision on interest rates and similar pullbacks are also being seen across the stock market which is down. The uncertain FOMC decision brought Bitcoin down to the second-best January on record.
On Jan. 30 a bankruptcy examiner for Celsius submitted a 470-page report that found Ponzi-like use of customer funds. Combined with the Jan. 18 announcement that the United States Department of Justice levied enforcement action against Bitzlato and ramped-up pressure on certain players in the crypto sector, Binance started to block certain users’ accounts and crypto legislation is likely in the crosshairs.
After initially benefiting from a Consumer Price Index (CPI) print which showed inflation slowing beyond expectations in December 2022, crypto and stock prices began to cool as retail data missed expectations and earnings diminished.