• The Federal Reserve has predicted decreased inflation for 2023, which caused the price of Bitcoin to spike.
• Jerome Powell warned that rate hikes could mean more individuals unable to achieve the American dream and that inflation goals may not be met in 2023.
• Bitcoin had its worst year on record in 2022, falling from an all-time high of $68,000 to around $16,600 by the end of the year.
Good News From The Fed
The Federal Reserve recently announced that they are predicting decreased inflation for 2023, causing a surge in the price of bitcoin. Jerome Powell, Federal Reserve chair, said during an interview: “We expect 2023 to be a year of significant declines in inflation.“ He also warned that rate hikes could mean more individuals unable to achieve the American dream and that inflation goals may not be met in 2023.
Bitcoin’s Worst Year On Record
Prior to this news about decreased inflation for 2023, bitcoin had its worst year on record in 2022. Bitcoin rose to an all-time high of $68,000 per unit but then dropped into the high $40,000 range over a period of eight weeks – resulting in a loss of $20K. By 2022’s end, bitcoin was trading at around $16,600 – more than 70 percent below its all-time high. Many other forms of crypto also saw losses during this time as well and caused the crypto industry as a whole to fall below $1 trillion when it had been valued at more than $3 trillion just 11 months prior.
Since then however, bitcoin has seen somewhat of a bullish period with prices adding up roughly $7K over the last few weeks – giving investors hope again and allowing them to put 2022 firmly behind them where it belongs. This news from The Fed regarding potential decreases in inflation was taken positively by many investors hoping for some good news after enduring such a terrible year with their investments last year.
Rate Hikes Ahead?
Jerome Powell did warn however that rate hikes could still occur throughout this upcoming year and even into 2024 – meaning house and car sales may decline due to fewer people being able to pay interest rates on such items. It is uncertain whether or not we will see any further rate hikes but it is something worth keeping an eye on nonetheless as it could have serious implications for both businesses and individuals alike if we do indeed see further rises throughout this period as Jerome Powell predicts we might do so .
Overall though there seems to be some positive signs ahead for those who are invested in cryptos despite warnings from Jerome Powell about possible future rate hikes which could still cause some issues down the line if they come about as he expects them too . We will have to wait and see how these developments unfold over time but at least there is some reason for optimism following what was an incredibly difficult year for crypto investors everywhere .