Bitcoin prices fell to a week low today. They were under pressure from expectations that the US Federal Reserve (Fed) would keep interest rates high for longer. After the US revealed higher than expected inflation
Bloomberg news agency reported that Bitcoin fell more than 2% to $62,505 as of 12:30 Singapore time.
The Fed will open its monetary policy meeting on April 30 and will announce its meeting decision on Wednesday, May 1, US time The CME Group’s latest FedWatch Tool indicates that investors are giving it almost 100% weight 5.25-5.50 % at this meeting.
Investors are keeping a close eye on the statements of Jerome Powell, the Chairman of the Fed, this time. Find clear signals about the direction of interest rates this year. After the United States revealed a Personal Consumption Expenditure (PCE) price index that was higher than expected. As a result, investors predict that the Fed may cut interest rates only 1-2 times this year, starting in November. But there is growing concern that the Fed may not cut interest rates at all this year.
The US Commerce Department said on Friday that the PCE index rose 2.7% year over year in March. Above analysts’ expectations of 2.6%.
The PCE index is considered to be a measure of inflation to which the Fed attaches importance. Because it can detect changes in consumer behavior and covers the prices of goods and services more widely than the Consumer Price Index (CPI).
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