Home Latest News Bitcoin Is Now Braced For A Huge Earthquake – Forbes

Bitcoin Is Now Braced For A Huge Earthquake – Forbes

Bitcoin BTC has broken its recent losing streak, climbing over the weekend despite a stark warning over its price going “negative.”
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The bitcoin price has climbed back over $17,000 per bitcoin for the first time this year, though it’s been left in the dust by one new, viral cryptocurrency.
Now, after a former bitcoin billionaire doubled down on an outrageous bitcoin price prediction, expectations are rising the U.S. Federal Reserve could pull off its dream so-called soft landing economic scenario, managing to smother inflation without suffocating the economy—and potentially setting up another bull run.
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The bitcoin price has come off its recent lows as traders brace for a Federal Reserve bombshell.
“The latest U.S. jobs data had something of a ‘Goldilocks’ quality about it with jobs growth robust enough to hint that the miraculous ‘soft landing’ might still be a possibility for the U.S. economy, while still delivering a slowdown in wage growth which should placate a twitchy Fed,” Danni Hewson, financial analyst at broker AJ Bell, said in an emailed note.
On Friday, the latest U.S. jobs data showed hiring growth decelerated in December, a sign the labor market remains robust even after the Fed embarked on a brutal program of interest rate hikes last year.
“The latest U.S. jobs data is another reminder that the world’s largest economy remains largely intact despite what inflation did in 2022,” Richard Carter, head of fixed interest research at Quilter Cheviot, said via email, adding: “Attention now turns back to the inflation data to get a better steer on how long the Fed’s hawkish behavior will last.”
Thursday will see the latest consumer price index (CPI) report released that’s expected to show core inflation has continued to cool. If inflation comes in under expectations it could mean the Fed adjusts its planned 2023 interest rate hikes.
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The bitcoin price has crashed from highs of almost $70,000 per bitcoin in late 2021 but remains far … [+] above its pre-Covid levels.
“Expectations have risen that aggressive moves by the Federal Reserve are finally bruising the resilient labor market and wounding a wage spiral,” Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said in emailed comments.
“However, policymakers are still likely to stay cautious, fearful that if they drop their guard, inflation may still come back to bite. Investors will be watching closely for fresh indications about just how the fight is going from the latest snapshot on US consumer prices due out on Thursday.”
The Fed’s ultra-loose monetary policy through the Covid pandemic helped push the bitcoin price to highs of almost $70,000 in late 2021. As soaring inflation forced the Fed to begin raising interest rates, the bitcoin price crashed through 2022, wiping away around 70% of its value.
Stock markets, and specifically high-growth technology companies, have crashed along with bitcoin over the last year.