The Crypto market dropped when U.S. Federal Reserve Bank of New York President John Williams declared 5-5.25% fair.
Due to falling inflation and rising employment, the Fed raised interest rates by 25 basis points to 4.5% to 4.75% last Thursday.
As U.S. Federal Reserve Bank of New York President John Williams concurred that Fed officials' projection rates in a range between 5 and 5.25% for the year 2023 is still acceptable, the overall cryptocurrency market gave up earlier gains.
Following John Williams' remark, the price of bitcoin dropped by 1.7%, and it is now worth $22,855 (BTC).
John Williams, president of the Federal Reserve Bank of New York, stated on February 8 that financial conditions appear to be approximately in line with the expected forecast for monetary policy. The goal of the US Federal Reserve is to raise inflation to 2%. I stated at a moderated discussion with the Wall Street Journal in New York that this still seemed to be a pretty plausible assessment of what we'll need to do this year in order to get supply and demand in balance and get inflation down.
By the end of 2023, U.S. Fed policymakers predicted a rate increase of up to 5.1%. He claims that most authorities' predicted rates, which fall between 5% and 5.25%, are still "a reasonable position."
Last Thursday, the U.S. Fed increased interest rates by 25 basis points to a range of 4.5% to 4.75% due to declining inflation and positive employment statistics. According to Williams, any rate increases would be based on newly released data. Additionally, the Fed's pivot has been out of focus because inflation still needs to fall.
From its day high of $23.3K to $22.7K, the price of bitcoin decreased by more than 2%. At this time, the cost is $22,830. The Fed is expected to continue rising interest rates this year, which causes the U.S. Dollar Index (DXY) to soar to 103.50.
Along with other altcoins including Shiba Inu, Cardano, Dogecoin, and Ethereum, the overall cryptocurrency market also experienced a 2% decline. The current price of Ethereum is $1,646, which is 3.2% less than its 24-hour high of $1,646.
