Bitcoin once fell below 30,000! The US Federal Reserve Chairman said that "interest rates may be raised twice more", what do analysts think?

The US Federal Reserve chose to stop raising interest rates in June, indicating that the inflation nightmare has eased, but the latest remarks by the Fed Chairman hinted that interest rates may continue to rise in the future.

The Fed chairman reiterated that interest rates may continue to rise this year, and Bitcoin once fell below 30,000

The Federal Reserve chose to suspend interest rate hikes in June, indicating that the inflation nightmare has eased, but the latest remarks by the Federal Reserve Chairman hinted that interest rates may continue to rise in the future. According to CNBC, Federal Reserve Chairman Jerome Powell said at a monetary policy meeting on Wednesday (28th) that due to the strong performance of the US job market, more measures to limit inflation will be introduced. It was previously reported that after the Federal Reserve's June interest rate decision meeting, it had revealed expectations of continued interest rate hikes. At that time, Federal Reserve officials hinted that the United States may still raise interest rates twice more by the end of 2023.

It is worth noting that even though the CPI annual growth rate has dropped to 4% in May, the Fed's goal is to reduce the CPI annual growth rate to 2%. Most economists believe that the US economy may be heading for a mild recession, and even Powell believes that there is a possibility of an economic recession. Powell's remarks caused the three major US stock indexes to fall slightly. For example, the Dow Jones Index fell 120 points; and Bitcoin ($BTC) also fell below $30,000, falling to a low of $29,858, but quickly rebounded and was quoted at $30,164 as of this morning (29th) when writing.

Analysts: Pay attention to market risk appetite and important support

Even though Bitcoin is often referred to as a "safe-haven asset" or "digital gold" in the cryptocurrency world, it is still a risky asset most of the time, similar in nature to stocks and commodities.

Brian Spinelli, chief investment officer of Halbert Hargrove, an investment advisory firm, previously pointed out: "When interest rates rise, interest in investing in high-risk assets decreases, which may be one of the reasons for the decline in digital asset prices last year." He added: "The future of cryptocurrencies this year will depend on how much risk appetite the investor community has, and the market does not seem to have that appetite at the moment."

Since the beginning of the year, the cryptocurrency market has been volatile. It first rose in March during the U.S. banking crisis, and then fell due to the crackdown by U.S. regulators. The recent actions of asset management giant BlackRock have been explained. Good for the organization.

It was previously reported that Bitcoin has soared by more than 87% in six months from the low of around $16,548 at the beginning of this year. However, some experts have warned that it is necessary to pay attention to short-term volatility risks. If Bitcoin faces the risk of a correction, the strong support level will be $27,000.