Here’s why crypto prices are down
In today’s The Market Report episode, analyst and writer Marcel Pechman discusses why crypto prices are going down after Bitcoin (BTC) failed to break above $29,000, plus whether or not Jerome Powell is lying about keeping interest rates above 5%, and lastly, what Warren Buffett meant by the “incredible period” coming to an end. The show airs every Tuesday on the Cointelegraph Markets & Research YouTube channel.
The first news article explains why Bitcoin has been trading in a narrow range near $28,000. The culprit? The standoff between markets and policymakers as United States Federal Reserve Chair Jerome Powell publicly stated that interest rates are unlikely to come down this year. Meanwhile, the markets for risk-on assets have firmly priced in rates to decrease in the coming months.
Pechman explains why the Fed raised interest rates above 5% and the apparent disconnection between the 3.4% unemployment rate and the 42 million North Americans who are SNAP recipients (on food stamps). Furthermore, the analyst dives into the $31.5 trillion in government debt and the discussion to further raise this limit.
But, more importantly, Pechman explains that Bitcoin could revisit sub-$20,000 levels if the government is not bluffing by keeping interest rates above 5% throughout 2023. As for the memecoin invasion, Pechman thinks that the PEPE rally (and subsequent correction) is merely a sector rotation, not an altcoin season by any means. Moreover, the analyst explains why futures markets are needed to create balanced and more effective market pricing for PEPE.
On to the show’s next topic: Pechman discusses Warren Buffett’s bear play after increasing his investment holding company Berkshire Hathaway’s cash position to its highest level in 18 months. An incoming recession or merely weaker earnings in the next couple of quarters? Check out today’s Market Report to find out.
In the last part of The Market Report, Pechman explains what caused Bitcoin network fees to surge above $10, causing Binance to halt withdrawals. Are Ordinals and Inscriptions an attack on Bitcoin? What does it mean for the Lightning Network and Bitcoin’s use case in general? Don’t miss it! The show is available exclusively on the Cointelegraph Markets & Research YouTube channel.