KEY POINTS:
- Bitcoin stabilizes near $57,000.
- Fed’s Powell shakes markets.
- BTC to remain volatile.
OG digital asset got smacked by Jay Powell’s speech on inflation and tumbled for a third straight day to near $56,000.
- Bitcoin prices BTCUSD drifted to the downside for a third straight day Wednesday after Federal Reserve chief Jay Powell shook markets as only he can. The powerful central banker said that interest rates are likely to stay higher for longer (and maybe even longer) in an effort to stamp out stubborn inflation. Bitcoin didn’t especially like the news and nosedived.
- Prices of the OG token fell 7% on the day, sliding from a session high of just under $65,000 to a session low of just above $56,000. Early on Thursday, the flagship digital asset remained under pressure with its price tag floating near mid-$57,000 per coin. More interestingly, at least to technical analysts, Wednesday’s drop pierced the 100-day simple moving average, signaling a potential short-term bearish trend.
- What next? Bitcoin is considered a risk asset — a lot riskier than stocks due to its inherent volatility. While the overarching narrative revolves around inflation, Bitcoin could continue to do what it does best — jump up and down as markets try to discover its price. Further, April’s jobs data is arriving tomorrow and could be another catalyst for Bitcoin to shoot in either direction, depending on the nonfarm payrolls number.