Bitcoin was sharply lower this week after a bearish sentiment gripped markets.
BTC – Weekly Chart
BTC has fallen to test the $50,000 level this week and needs to find support here, or further losses are possible.
Bearish comments from the JP Morgan CEO didn’t help on Wednesday. Speaking with CNBC, Jamie Dimon wasn’t positive that the U.S. Federal Reserve would successfully return inflation to its 2% target. He has concerns about inflation due to deficit spending, “remilitarization,” and the green economy shift. On the subject of an imminent Fed rate cut, Dimon says it’s likely coming, but it will not have much effect.
However, Federal Bank of New York President Bill Dudley suggests the Fed needs to cut rates soon.
“Evidence of a weakening labour market and moderating inflation has accumulated rapidly, strongly suggesting that the Fed is behind the curve,” Dudley wrote. He said the recent rise in the unemployment rate has breached the “Sahm rule” and suggests. Higher unemployment and a U.S. recession are on the way.
“Monetary policy is tight and becoming tighter as price and wage inflation moderate,” he added. Dudley suggested 150 basis points in rate cuts would be needed, but even another 100 basis points may be necessary.
Bitcoin has been suffering as stock markets wobble but Ripple’s XRP coin was higher as the SEC brought an end to the long-running court cast against the company with a $125 million fine.
District Judge Analisa Torres imposed the fine after finding that 1,278 institutional sale transactions by Ripple violated securities law.
On Wednesday, it was reported that Bitcoin investment products saw a combined outflow of $149 million on August 6. The price of BTC crashed below the $50,000 level the next day. Bitcoin spot exchange-traded funds in the United States have continued to experience significant outflows since the market downturn began, which wiped $367 billion from the sector on Monday.
