{"id":18430,"date":"2023-03-07T16:52:04","date_gmt":"2023-03-07T16:52:04","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/crypto-stocks-fall-as-powell-hints-at-higher-rates\/"},"modified":"2023-03-07T16:52:04","modified_gmt":"2023-03-07T16:52:04","slug":"crypto-stocks-fall-as-powell-hints-at-higher-rates","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/crypto-stocks-fall-as-powell-hints-at-higher-rates\/","title":{"rendered":"Crypto, stocks fall as Powell hints at higher rates"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1678206409926-bb62d3fa-e4f6-49c1-a1c5-83ffbfce2a0c-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1678206409926-bb62d3fa-e4f6-49c1-a1c5-83ffbfce2a0c-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1678206409926-bb62d3fa-e4f6-49c1-a1c5-83ffbfce2a0c-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1678206409926-bb62d3fa-e4f6-49c1-a1c5-83ffbfce2a0c-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/>\n<\/picture>                    <\/div>\n<ul>\n<li dir=\"ltr\">Crypto and stocks reacted negatively to comments about US inflation by Fed Chair Jerome Powell.<\/li>\n<li dir=\"ltr\">Bitcoin traded to lows of $22,120 while the S&amp;P 500 fell 1%.<\/li>\n<li dir=\"ltr\">Investors are now likely to turn their attention to the next Fed meeting in March.<\/li>\n<\/ul>\n<p dir=\"ltr\"><a href=\"https:\/\/coinjournal.net\/cryptocurrencies\/\">Cryptocurrencies<\/a> fell early Tuesday, with <a href=\"https:\/\/coinjournal.net\/bitcoin\/\">Bitcoin<\/a> trading towards support around $22,100 on broader market reaction to comments from Federal Reserve Chair Jerome Powell.<\/p>\n<div class=\"fr-img-space-wrap\"><span class=\"fr-img-caption fr-fic fr-dib fr-draggable\" style=\"width: 600px\"><span class=\"fr-img-wrap\"><\/p>\n<p dir=\"ltr\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/media.igms.io\/2023\/02\/07\/1678206004154-f25dfced-f060-4aca-92f4-77176de06dd2.png\" style=\"width: 600px\" class=\"fr-fic fr-dib\" width=\"600\" height=\"274\"\/><span class=\"fr-inner\">Coin360 crypto map showing price dump after Powell\u2019s remarks. Source:\u00a0<a href=\"https:\/\/coin360.com\/share\/2023\/3\/2\/0-11f54940-bd04-11ed-9c93-d7c24f53d0a6_1678206069716.png\" rel=\"noopener noreferrer\" target=\"_blank\">Coin360<\/a><\/span><\/p>\n<p><\/span><\/span><\/p>\n<p class=\"fr-img-space-wrap2\">The reaction also saw US stocks slip after Monday\u2019s gains, with investors appearing to have been spooked by Powell\u2019s remarks on interest rates.<\/p>\n<\/div>\n<h2 dir=\"ltr\">Crypto, stocks fall on Fed Chair remarks<\/h2>\n<p dir=\"ltr\">Powell was on Tuesday making his first of two appearances before US Congress \u2013 first at the Senate Banking Committee and on the second day, at the House Financial Services Committee. The central bank\u2019s monetary policy, particularly on inflation, is a key element of the Fed Chair\u2019s prepared testimony.<\/p>\n<p dir=\"ltr\">Notably, Powell told lawmakers that it is possible the Fed will look to raise interest rates further given recent economic data that came in hotter than expected. According to the Fed, these sets of economic metrics suggest interest rates could still go up. This, he noted, will be warranted if outlook indicated there\u2019s need for faster tightening.<\/p>\n<p dir=\"ltr\">Following the news, crypto, stocks and bonds reacted lower as the dollar index rose. Bitcoin touched 24-hour lows of $22,120, while Ethereum fell to support near $1,540. Across the stock market, the S&amp;P 500 dropped by 1%, while the Dow Jones Industrial Average and the Nasdaq Composite shed 0.6% and 0.9% respectively.<\/p>\n<p dir=\"ltr\">Economist Mohamed El-Erian pointed out the market\u2019s reaction and what Powell\u2019s testimony projects.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">So much for the repeated dovish mentions of disinflation at the last press conference<a href=\"https:\/\/twitter.com\/hashtag\/Fed?src=hash&amp;ref_src=twsrc%5Etfw\">#Fed<\/a> Chair Powell&#8217;s prepared comments now tilt to the hawkish side, including the quote below that will go viral<a href=\"https:\/\/twitter.com\/hashtag\/Stocks?src=hash&amp;ref_src=twsrc%5Etfw\">#Stocks<\/a> and <a href=\"https:\/\/twitter.com\/hashtag\/bonds?src=hash&amp;ref_src=twsrc%5Etfw\">#bonds<\/a> sell off as they wait for his responses to Senators&#8217; questions <a href=\"https:\/\/t.co\/xOozIXczam\">pic.twitter.com\/xOozIXczam<\/a><\/p>\n<p>\u2014 Mohamed A. El-Erian (@elerianm) <a href=\"https:\/\/twitter.com\/elerianm\/status\/1633122991008632837?ref_src=twsrc%5Etfw\">March 7, 2023<\/a><\/p>\n<\/blockquote>\n<p dir=\"ltr\">While markets might see a swift bounce from the losses, investors are likely to remain jittery ahead of the Fed\u2019s next policy announcement expected on 22 March, 2023.\u00a0<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\"https:\/\/coinjournal.net\/news\/crypto-turns-red-as-fed-chair-jerome-powell-hints-at-higher-rates\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News ) Crypto and stocks reacted negatively to comments about US inflation by Fed Chair Jerome Powell. Bitcoin traded to lows of $22,120 while the S&amp;P 500 fell 1%. Investors are now likely to turn their attention to the next Fed meeting in March. Cryptocurrencies [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":18431,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/18430"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=18430"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/18430\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/18431"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=18430"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=18430"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=18430"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}