At the time of writing, Bitcoin is finding buyers at $ 29,650 and altcoins are experiencing much more serious losses. There are explanations made by Powell on the basis of the decline. Today, all crypto investors were focused on Powell, who will be broadcast on the WSJ at 21:00. We shared the explanations live.
Interestingly, Bitcoin continues its decline. The interesting part is that DXY is falling. US stock markets and cryptocurrencies are losing value despite the easing dollar index. For the FED Chairman’s statements, you can reach the related news on our website. Powell’s speech ended as of 21:40 Bitcoin continues to find buyers at $ 29,640. The intense fear in the cryptocurrency markets was related to the announcements to be made regarding Terra UST. However, Powell did not include cryptocurrencies in his speech.
Mentioning that inflation is mainly high, he said that they will focus on reducing it with all the tools at their disposal.
Will Altcoins Rise?
At the meeting to be held next month, it was said that an increase of 50 basis points is the table. Stating that they will bring the interest rates to the level they want by the end of the year, Powell will continue to pressure the markets. On the other hand, today SEC Chairman Gensler referred to the Terra UST collapse and said that cryptocurrencies are extremely risky. Saying that much more urgent steps should be taken to protect investors, Gensler recently announced that they are working on a draft that determines the authorities of the regulators in the country regarding crypto markets.
If Terra doesn’t stick to her recovery plan and largely compensates victims, the latest event is likely to be used more by regulators. Moreover, it is known that some US citizens sued exchanges for not removing the LUNA trading pair at the right time. Terra founder Do Kwon is based in South Korea. But given the victims in the country, there is no reason why the SEC should not launch an investigation.
The PPI data suggested that Powell might give a more moderate speech. However, this did not happen, it is possible that we will see more decreases in altcoins depending on different news feeds in the next period. Towards the end of May, investors should be prepared for the increasing volatility while also taking into account the pressure that the next rate hike in June will exert on the markets.