Bitcoin (BTC) faced another test of its $30,000 support level on June 28, as the United States Federal Reserve expressed a hawkish stance on inflation. The price of BTC remained within a narrow range at the Wall Street open, according to data from Cointelegraph Markets Pro and TradingView.
Fed Chair Jerome Powell made fresh comments on economic policy during the European Central Bank Forum on Central Banking 2023 in Sintra, Portugal. Powell reiterated the Fed’s consensus for further interest rate hikes in the coming year. Despite pausing the hiking cycle that began in late 2021, Powell emphasized that there was still room for further policy tightening. He stated, “We started at negative real interest rates; we’ve since moved up to where we are actually in restrictive territory, but we haven’t been there very long, so we believe there’s more restriction coming.” Powell confirmed that there was majority support for at least two additional rate hikes.
The market’s reaction to Powell’s comments was cautious, with Bitcoin pulling back from its recent gains and refraining from testing the yearly high of $31,000. Market participants chose to wait and see how the situation would unfold.
Popular trader CryptoCon commented on Twitter, noting that Bitcoin’s price had retraced from the lows, paused at the range high, and continued towards new yearly highs. Traders and investors closely followed Bitcoin’s price movement and awaited further developments.
In other news, MicroStrategy made headlines by purchasing over 12,000 BTC for its corporate treasury. However, this significant development did not seem to have a tangible impact on the market. MicroStrategy CEO Michael Saylor confirmed the purchase, revealing that the company had added 12,333 BTC to its reserves, worth $347 million at the time. This brought MicroStrategy’s aggregate cost basis for each BTC to $29,668. With this acquisition, MicroStrategy now owns almost 0.7% of the entire potential BTC supply. It also holds ten times more BTC than the second-largest corporate treasury, which belongs to Voyager Digital.
Despite these notable events, it is essential to remember that this article does not provide investment advice or recommendations. Investors should conduct their own research and assess the risks involved before making any investment decisions.
Overall, Bitcoin faced a critical test of its support level amidst the Federal Reserve’s hawkish stance on inflation. Powell’s comments about further interest rate hikes added to the uncertainty in the market. Simultaneously, MicroStrategy’s significant Bitcoin purchase highlighted the growing interest of corporations in acquiring digital assets for their treasuries. Traders and investors closely monitored these developments to gain insights into the future direction of the market.