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Breaking: Crypto Market Falls After US Fed’s Williams Support 5-5.25% Rate Hike

Crypto market fell as U.S. Federal Reserve Bank of New York President John Williams considers forecast rates of 5-5.25% reasonable.
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Breaking: Crypto Market Falls After US Fed’s Williams Support 5-5.25% Rate Hike

The broader crypto market losses earlier gains as U.S. Federal Reserve Bank of New York President John Williams agreed that Fed officials forecast rates in a range between 5 and 5.25% for the year 2023 is still reasonable.

Bitcoin price fell over 2% after the comment by John Williams and the BTC price is currently trading at $22,795.

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US Fed President John Williams Peak Rate Forecasts of 5.25%

Federal Reserve Bank of New York President John Williams on February 8 said financial conditions look roughly in line with the likely outlook for monetary policy. The U.S. Federal Reserve looks to bring the inflation target to 2%.

“My view is that still seems a very reasonable view of what we’ll need to do this year in order to get supply and demand in balance and bring inflation down,” said during a moderated discussion with the Wall Street Journal in New York.

U.S. Fed officials forecasted a rate hike of up to 5.1% by the end of 2023. However, he asserts forecast rates in a range between 5-5.25% by most officials is “still a reasonable view.”

The U.S. Fed raised interest rates by 25 bps to a range of 4.5% to 4.75% last week amid cooling inflation and strong jobs data. Williams believes further rate hikes would depend on incoming data. Also, the Fed pivot is out of focus until now as inflation needs to drop more.

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Crypto Market Resonates Lower

Bitcoin price fell over 2% from the day high of $23.3K to $22.7K. The price is currently trading at $22,830. The U.S. Dollar Index (DXY) jumps higher to 103.50 as the Fed is likely to continue raising interest rates this year.

The broader crypto market followed suit and altcoins such as Ethereum, Dogecoin, Cardano, Shiba Inu, and others also fell over 2%. Ethereum price trades at $1,633, down 2% from the 24-hour high of $1,688.

Also Read: Top 5 AI Crypto Tokens & Projects Ready To Skyrocket In 2023

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Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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