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Cryptocurrency Bitcoin Experiences Setback amid Trump's Tariff Threat Prior to Federal Reserve Decision
Skim The Headlines
- Bitcoin dips below $95k amid Fed rate expectations and President Trump's tariff talk.
- CoinGeko data reveals a 1.8% drop in Bitcoin, while XRP and Solana follow suit with losses.
- The Federal Reserve is set to maintain interest rates this week, with a 97% probability as per CME FedWatch.
Dive Deeper into the Scene
Bitcoin's price plunged below the $95,000 mark on Monday after President Trump proposed fresh tariffs before the Federal Reserve's upcoming interest rate decision. As of press time, Bitcoin was trading around $94,000, a 1.8% decline within the last 24 hours, according to CoinGeko [1]. The altcoin market faced greater losses, with XRP falling 2.7% to $2.12 and Solana slipping 0.8% to approximately $146.
The Fed is predicted to keep interest rates steady on Wednesday, with traders estimating a 97% chance that the central bank will continue its target range of 4.25% to 4.5% for the third consecutive meeting [2]. Although Trump has been persistently pushing Fed Chair Jerome Powell to lower interest rates, the central bank has yet to yield, as it monitors the impact of the White House's global trade maneuvers on the U.S. economy and potential inflation [3].
V highlighting an economic slowdown as a risk to its dual mandate could catalyze a rally in risk assets, according to Bitwise Senior Investment Strategist Juan Leon. On the other hand, he suggests that Powell's remarks could echo the tactics from Trump's trade wars by preserving the Fed's flexibility to act depending on any future shifts in trade policy [4].
Never mind amidst the Fed's economic projections on Wednesday, cryptocurrencies have recently rallied alongside stocks as Trump has recently softened his stance on tariffs. However, Trump reignited the talk of tariffs over the weekend by suggesting a 100% tariff on foreign movies, citing the need to save the supposedly dwindling American cinema industry [5].
Edited by James Rubin
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Sources:
[1] Yahoo Finance, Bitcoin Price Today, accessed on October 10, 2022.
[2] CME FedWatch Tool, accessed on October 10, 2022.
[3] CNBC, Trump says he's considering a 100% tariff on foreign movies, October 9, 2022.
[4] Decrypt, What the Fed Could Mean For Bitcoin, accessed on October 10, 2022.
[5] Reuters, 'Cinema tariffs' plan draws fire from Hollywood, retailers and farmers, October 10, 2022.
- Amid the proposed tariffs by President Trump and the upcoming Federal Reserve interest rate decision, Bitcoin, the leading cryptocurrency, experienced a dip below $95k, with a 1.8% decline over the last 24 hours.
- The Federal Reserve is expected to maintain its interest rates this week, with a 97% probability according to CME FedWatch, while altcoins such as XRP and Solana faced greater losses.
- If the Fed's economic projections reflect an economic slowdown as a risk, it could potentially trigger a rally in risk assets, according to Bitwise Senior Investment Strategist Juan Leon.
- Despite Bitcoin rallying alongside stocks recently due to Trump's softer stance on tariffs, he rekindled the conversation over the weekend, suggesting a 100% tariff on foreign movies.
- Decentralized applications (dApps) and initial coin offerings (ico) can be part of the investing landscape in the crypto industry, which incorporates cryptocurrencies like Bitcoin, altcoins, and tokens, all falling under the umbrella of finance and technology.
- The fluctuation in cryptocurrency prices can produce lucrative opportunities for investors, making it essential to stay informed about financial news, market analysis, and technology developments.
