Almost $3 billion worth of Bitcoins had been removed by traders from various centralized exchanges as the first cryptocurrency’s price spiked up to $39,000 as the Fed left the key rate in the country unchanged.
But as some traders and investors felt relief seeing Bitcoin almost reaching $40,000, the presence of additional financial risks on the market and Jerome Powell’s rhetoric about inflation and monetary policy pushed the first cryptocurrency down to $36,000.
As suggested by Powell, inflation in the U.S. could be aggravating the market in the next few months, which is why the regulator will take action in the first half of the year. The 16th Chair of the Federal Reserve stated that the regulator is expecting the first rate hike in March.
