Updated 04/07 below. This post was originally published on July 3rd

Bitcoin
Bitcoin
suddenly dropped to $60,000 per bitcoin after a Billionaire Bitcoin Buyer Reveals He’s Changed His Mind About Bitcoin.

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Bitcoin price has been struggling over the past month, falling nearly 15% as fears of a “real correction” grow.

Now, after one of bitcoin’s biggest bulls said the cryptocurrency could eventually replace the US dollarFederal Reserve Chairman Jerome Powell warned of a “critical period” for the Fed, calling deficit levels “unsustainable.”

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Forbes’ Groundbreaking Bitcoin Bill Introduced to Congress After Cryptocurrency Price CrashBy Billy Bambrough

US Federal Reserve Chairman Jerome Powell warned that the Fed is facing a “critical” period that could… [+] cause chaos in the price of bitcoin.

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“The level of debt we have is completely sustainable, but the path we are on is unsustainable,” Powell said during the European Central Bank conference on Portugal. reported by the Financial Times, adding that the Biden administration was taking excessive risks by “running a very large deficit at a time when we are at full employment” and said that “it is not possible to maintain these levels in good economic times for very long.”

In May, Treasury Secretary Janet Yellen issued a sobering warning about the US’s spiraling $34 trillion debt that some think could help drive the price of bitcoin to $1 million in the next 18 months.

Bitcoin, cryptocurrency and stock market traders have been closely watching the Fed for signs it will start cutting interest rates in recent months, with analysts forced to scale back expectations from around seven cuts in 2024 to just one or two.

“Getting the right balance in monetary policy during this critical period is really what I’m thinking about in the early hours,” Powell said in response to a question about his main concerns, the AP reported. reported.

Update 04/07: The price of bitcoin and the cryptocurrency market have taken a massive tumble over the past 24 hours, with the price of bitcoin falling well below $60,000 and wiping out $200 billion from the combined cryptocurrency market since July 1. Ethereum and the rest of the mainstream market are down more sharply than bitcoin, with ethereum rival solana, the Telegram-linked toncoin and the meme-based dogecoin all down nearly 10% since yesterday.

“Bitcoin is breaking through significant technical and psychological levels at $60,000,” Markus Thielen, founder of 10x Research, wrote in emailed comments.

“This is a key level for bitcoin miners and buyers of bitcoin spot exchange-traded funds (ETFs), and also broadly marks the bottom (support) of the three-month trading range. Price declines could accelerate as support is broken and sellers struggle to find liquidity. Only ill-informed traders are willing to buy here. Breaking this support could trigger a sharp decline to the low $50,000s.”

Last month, the Federal Reserve left interest rates unchanged and signaled it would make just one cut in 2024, with more cuts in 2025. The Fed is under pressure to cut interest rates after raising them at a record pace following massive Covid-era stimulus spending and money printing that sent inflation spiraling out of control.

“Powell said the U.S. was back on a ‘disinflationary path,’ but added that more data was needed before the Fed would consider cutting rates,” Russ Mould, chief investment officer at AJ Bell, said in emailed comments. “The last sentence sounds a bit like a broken record as far as the market is concerned, so the most important part of Powell’s speech was the reference to disinflation, as investors interpreted that as a stronger case for cutting rates soon.”

Eyes now turn to the release of the Fed’s June meeting minutes on Wednesday and Friday’s jobs report, which could “cement” expectations for a September interest rate cut if it shows hiring has slowed.

“A weaker-than-expected jobs report on Friday, if it comes through, would likely further cement the case for such a cut, which markets are assigning a roughly 70% chance of happening — perhaps slightly lower than expected,” said Michael Brown, senior research strategist at Pepperstone. counted Market observation.

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Forbes’Replace the US Dollar’ – Legendary Tech Billionaire Issues Shocking Bitcoin Prediction Amid Ethereum, XRP, and Cryptocurrency Price SwingsBy Billy Bambrough

The price of bitcoin has fallen from its recent peak of over $70,000 per bitcoin.

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The higher-for-longer interest rate environment has triggered a warning from analysts at the world’s largest asset manager, BlackRock, who said an “unprecedented” scenario is unfolding that could hit the price of bitcoin and the cryptocurrency market.

“We see central banks forced to keep interest rates higher than before the pandemic to address persistent inflationary pressures,” said analysts at BlackRock, which helped engineer a boom in the price of bitcoin this year. leading a bitcoin exchange-traded fund (ETF) revolution on Wall Streetwrote in a report.

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