Bitcoin falls under $70K
In light of mounting concerns over increasing inflation in the United States, the Federal Reserve has chosen to maintain interest rates unchanged.
Documents from the recent gathering of the Federal Open Market Committee (FOMC) highlighted the committee members' hesitation to lower interest rates.
According to the discussion minutes, despite some advances, inflation continues to hover above the committee's goal of 2%, with numerous consumer polls indicating heightened fears regarding inflation in the future.
Controversy Surrounds FOMC's Resolution
Peter Schiff, Euro Pacific Capital's CEO and Chief Global Strategist, voiced his criticism of the committee's decision in a post on X (previously known as Twitter).
Sharing a sentiment akin to Schiff's, Goldman Sachs Group Inc.'s CEO, David Solomon, expressed at an event at Boston College that he foresees "no" rate cuts happening soon, stating, "I still haven't seen data persuasive enough to suggest interest rate cuts are imminent."
Cryptocurrency Market Faces Setback
The repercussions of the FOMC's stance sparked debate over its impact on the wider financial market.
This decision negatively influenced major cryptocurrencies, as demonstrated when Bitcoin [BTC] fell below the $70K threshold and Ethereum [ETH], after a leap from $3,064 to $3,790, saw declines as well on the 22nd of May.
At the moment of this writing, a majority of the leading cryptocurrencies were witnessing downside movements in their daily financial charts.
Optimism in the Cryptocurrency Realm
Despite the downturn in the cryptocurrency market, @cryptosanthoshK, a specialist in Crypto & DeFi, and Ali Martinez, a technical and on-chain analyst, have both expressed positive outlooks.
Supporting this optimism, Glassnode's Bitcoin liveliness metric indicated an inclination towards long-term investment over immediate gains, as showcased by increased coin day creation relative to destruction.
Satoshi Flipper, an investor/trader, anticipates a notable surge in Ethereum's value stemming from the potential approval of an exchange-traded fund (ETF), commenting, "$ETH is poised for a significant ETF-triggered rally this week. Market valuations cannot remain illogical indefinitely."
Stock Market Takes a Hit
Even with the buoyant outlook in the crypto domain, it’s important to also note the downturn in the stock market on the 22nd of May.
The Dow Jones Industrial Average fell by 201.95 points, or 0.51%, closing at 39,671.04, marking the poorest performance of the month. The S&P 500 also dropped by 0.27% to land at 5,307.01, while the Nasdaq Composite, with a focus on tech stocks, faced a 0.18% decline to end at 16,801.54.
