The bitcoin price retreated to a little over $40,000 and is now 5.5% down from this week’s high.
The crypto market dipped in light of Fed Chair Powell’s remarks yesterday.
“It is appropriate in my view to be moving a little more quickly… I also think there is something to be said for front-end loading any accommodation one thinks is appropriate.
As such, Goldman Sachs analysts believe the Fed’s actions will have a strong effect on cryptos.
To settle this debate, Coindesk’s George Kaloudis did an in-depth analysis, which looked into bitcoin’s price correlation to riskier equities and inflation news.
“While bitcoin’s hard money properties make it a risk-off asset for its supporters, investors see a risk-on asset because of its volatility and technology-like asymmetric price upside.
Powell’s remarks send a stark message that the Fed is taking inflation very seriously.