Bitcoin (BTC) continued to fight for $43,000 support at the Wall Street open on March 24 amid fresh jitters tied to United States economic policy.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Kashkari warns of “overdoing it” on hikes
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD staying just below the $43,000 mark as trading began Thursday.
At the time of writing, U.S. markets were still in the process of steadying in their first hour, these of particular importance to Bitcoin traders given the considerable positive correlation between BTC and equities. This week, it emerged that the correlation between BTC/USD and the S&P 500, for example, had hit its highest in nearly 18 months.
Back in focus on the day was the Federal Reserve. In a widely reported Q&A session, Neel Kashkari, President of the Minneapolis Fed, revealed that there could be up to seven key rate hikes this year.
While potentially not all necessary, he explained, the Fed needed to deal with the issue of inflation.
“There’s a danger to overdoing it. We’re going to get information,” he said, quoted by Reuters.
Attempts to tighten monetary policy nonetheless showed their impact on bonds markets, these coming down 11% from their all-time highs in the steepest retracement since the 2008 Global Financial Crisis, markets commentator Holger Zschaepitz noted.
Nonetheless, traders were palpably more confident on the day, as Bitcoin saw its first closes over its 100-day moving average for almost four months.
BTC/USD 1-day candle chart (Bitstamp). Source: TradingView