"It goes up and down, I wonder where the price will be at the time of the halving?"
Currency king price crypto Bitcoin (BTC) last night tumbled up to $61,680 in the middle of the Chairman Federal Reserve (Fed) Jerome Powell make statements regarding the future of interest rates.
This is because of Powell underlines the need to continue a controlled monetary policy to achieve its inflation target of 2%, so higher rates could last longer than most investors and analysts expect.
The move followed a series of strong economic numbers, including job growth and retail sales where 303,000 jobs were added in March 2024 while retail sales rose 0.7% versus 0.4% as forecast.
Historically, BTC has been heavily influenced by interest rate movements following the digital asset's tendency to change the investment environment with capital flows more interested in riskier assets such as crypto.
Reinforcing the cautious approach, Fed Vice Chairman Philip Jefferson did not mention any interest rate cuts in its recent statement instead focused on a willingness to maintain tight monetary policy.
There is no denying that the approaching BTC halving event may have an impact on supply, but it has been neutralized by bearish sentiment driven by the Fed's policy outlook.
As of this writing, the price of BTC recovering to $63,903 has jumped by 0.20% in the last 24 hours with a market cap of over $1 trillion but is still down 7.23% over the last week.
