The Fed’s Warning Crashes Bitcoin And Crypto Prices—A Shaky Year Ahead

The Fed’s Warning Crashes Bitcoin And Crypto Prices—A Shaky Year Ahead

This is a BETA experience. You may opt-out by Share to Linkedin This week, the price of Bitcoin (BTC) and other cryptocurrencies sank after the Fed released the minutes of its December meeting, which revealed a U-turn in its policy that might not bode well for crypto. As of now, the Bitcoin price is down 9% to $38, 040 for the week, tumbling from around $41, 500 after the news broke. The world's biggest crypto shed more than one-third of its value from its November peak. Meanwhile, the rest of the crypto market followed Bitcoin's lead. The Ethereum (ETH) price is down 10%, Binance Coin (BNB) slipped 11. 5%, and Solana's (SOL) price cratered 14%. What's the fuss? At the end of last year, the Fed had an about face. Fed Chair Jerome Powell ate his words and admitted inflation is not "transitory." And the minutes revealed that most Fed officials now warn about higher inflation than previously expected. Inflation naysayers turned hawks are now gearing up to take swift action. "Participants generally noted that, given their individual outlooks for the economy, the labor market, and inflation, it may become warranted to increase the federal funds rate sooner or at