Federal Reserve Bank of Minneapolis President Neel Kashkari and Federal Reserve Bank of St. Louis President James Bullard joined other US Fed officials to consider more rate hikes despite the catastrophic debt ceiling crisis. In fact, the debt ceiling deal will impact the BTC price as the US Treasury will issue government bonds to recover lost balance during the banking crisis.
Inflation and a tight job market may push US Federal Reserve to continue hiking rates. Fed Chair Jerome Powell’s speech last week failed to give a clear direction. Moreover, Dallas Fed President Lorie Logan, Fed Governor Philip Jefferson, New York Fed President John Williams, Federal Reserve Board Governor Michelle Bowman, and others agree with raising interest rates further.
US Fed to Likely Raise Interest Rates Over 6%
Federal Reserve Bank of St. Louis President James Bullard on May 22 said the central bank will need to raise interest rates twice this year before a pivot. The Federal Open Market Committee has raised rates aggressively to a range of 5% to 5.25%.
Meanwhile, Minneapolis Fed President Neel Kashkari also believes raising interest rates over 6% to curb inflation. He said even if Fed skip the rate hike in June, it shouldn’t be considered as a pause or a pivot as inflation has not reached the target.
“I think right now it’s a close call, either way, versus raising another time in June or skipping. What’s important to me is not signaling that we’re done.”
CME FedWatch tool indicates a 76% probability of pausing rate hike in June, a drop from 81% a day ago. Moreover, the US dollar index (DXY) continues to move higher, causing a rise in selling pressure on Bitcoin price.
Also Read: Peter Brandt Predicts Bitcoin Price Fall Below $25K In May
BTC Price To Break Below $25K
BTC price continues to trade sideways for a week, with the price currently trading near $26,800. The 24-hour low and high are $26,415 and $27,466, respectively. Whales and miners are selling their BTC holdings in anticipation of fall in BTC price due to macro.
Veteran trader Peter Brandt predicts Bitcoin price can break below the $26,800 level and fall to $24,800. After the correction, Bitcoin price will continue to move higher. Meanwhile, he remains bullish on a BTC price hitting $40,000.
Also Read: Smart Money More Inclined To Invest In Ethereum Over Bitcoin: Bloomberg
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
