Bitcoin (BTC) and broader financial markets faced a new sale on June 18 after comments from James Bullard, president of the US Federal Reserve in St. Louis, indicating that he expects the first rate hike to take place by the end of 2022.
Pollard’s comments were more hawkish than Fed Chairman Jerome Powell on Wednesday, which indicated that a rate hike would take place in 2023. Powell’s comments triggered sales in the financial markets when the US dollar gained strength.
Currency index in US dollars. 4-hour chart. Source: TradingView
Data from Cointelegraph Markets Pro and TradingView show that as the dollar went down, the bulls were caught by bitcoin as they plunged to a daily low of $ 35,129.
4-hour BTC / USDT chart. Source: TradingView
Consolidated sales of various assets, including equities, gold and cryptocurrencies, shattered the notion that Bitcoin is an uncorrelated asset, as the data show that BTC’s ratio to both gold and equities continued to increase through 2021.
Traditional markets close the week lower
Friday’s closing in traditional markets marked one of the worst weeks for the Dow Jones since October, after losing five straight sessions with a 3% drop in total this week.
The S&P 500 and NASDAQ were also hit hard on Friday, ending the day with 1.31% and 0.92%, respectively, while 10-year treasuries fell 4.04% in response to the dollar gain.
As for the arguments behind the Fed’s latest aggressive stance, Bullard cited higher-than-expected inflation as the economy reopens after the Covid-19 closure.
“We look forward to a good year, a good opening. But this year is more than we expected, inflation is more than we expected. I think it’s okay that we tend to tighten up a bit here to contain inflationary pressures. ”
Pollard predicted that future inflation would be “at 3% this year and 2.5% in 2022, before falling back to the Fed’s 2% target.”
The Altcoin price is falling
Altcoin prices coincided with bitcoins on Friday as traders fled to safe stack coins again as market volatility increased.
Daily indicators for the cryptocurrency market. Source: Coin360
The price of Ether (ETH) fell more than 13% to a low level of 2137 dollars, while Amp (AMP) fell 33% from a record high level of 0.1221 dollars set on 16 June.
On the subject: The Bulls’ reluctance to buy on downturns after Bitcoin fell nearly $ 35,000
Among the 200 best coins, the two best games per day are ZKSwap (ZKS) with 14% win and Gnosis (GNO) with 7.4% win.
The total market value of cryptocurrency is now $ 1.486 trillion, and the bitcoin dominance is 44.8%.