The world’s largest cryptocurrency Bitcoin (BTC) continues to face downward selling pressure as the BTC price now dips under $27,000. As of press time, Bitcoin is trading at a price of $26,873 with a market cap of $521 billion.
On Wednesday, May 31, Cleveland’s Federal Reserve Bank president made hawkish comments thus raising the possibility of one more interest rate hike by the US central bank. Also, China’s disrupting manufacturing data and signs of a slowdown kept crypto investors at the edge.
With the US government making a move towards increasing the debt ceiling, analysts believe that there’s a lack of any compelling reason for the Fed to pause further monetary tightening. Thus, many also expect a 25 basis points rate hike by the Fed during the next FOMC meeting in June.
During her interview with the Financial Times yesterday, Fed Cleveland Bank President Loretta Mester said that there’s no reason for the Fed to discontinue further rate hikes. However, she said that he opinion would change in case the inflation cools down and the job market turns sour. Speaking to the Financial Times, Fed President Mester said:
We may have to go further. At this point, I don’t really necessarily see a compelling reason that we wouldn’t want to take another small step to counter some of that really embedded, stubborn inflationary pressure.
Bitcoin Decoupling From Nasdaq 100 Hurts Investors This Time
Bitcoin has given a strong rally this year in 2023 while beating every other asset class in the market. However, BTC registered the first negative monthly closing during the last month of May 2023.