Fed Chair Powell Signals Readiness for Further Rate Hikes as Bitcoin Holds Steady

• The US Fed is prepared to implement additional interest rate hikes if deemed necessary.
• Bitcoin is trading at $25,875, reflecting a 0.52% decline over the past 24 hours.

To curb inflation, US Federal Reserve Chair Jerome Powell indicated that a weakening in the labor market may be required. He issued a firm warning that the Federal Reserve is prepared to implement further interest rate hikes if necessary.

Powell stated that the Fed intends to maintain interest rates at current levels until it is convinced that inflation is sustainably trending toward its 2% target. He delivered these remarks at the Economic Policy Symposium hosted by the Federal Reserve Bank of Kansas City. Amid persistent macroeconomic uncertainty, investors were closely awaiting the Fed Chair’s insights into the long-term economic outlook.

Bitcoin Price Faces Pressure

The Fed Chair noted that the monetary policy committee will deliberate thoroughly before deciding on another rate increase. The Federal Open Market Committee (FOMC) is scheduled to meet next on September 20, 2023, with the target rate currently set at 525–550 basis points (bps).

According to the CME FedWatch Tool, market participants currently assign a 78% probability that the next meeting will not include any rate hikes. Following an initial drop in reaction to the speech, Bitcoin’s price briefly spiked before falling to the $25,820 mark.

Significant selling pressure could ensue if the price breaks below the current support level around $25,660. At the time of writing, Bitcoin is trading at $25,875, down 0.52% in the last 24 hours. Additionally, trading volume has decreased by 12.85% according to data from CoinMarketCap (CMC).

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