Bitcoin and altcoins are facing a decline after the FED's September interest rate decision and Powell's hawkish statements.
Because BTC, which rose above $ 27,000 before the FED decision, fell to $ 26,000 afterwards.
Now, economic data from the USA is of great importance as investors and markets try to predict the FED's next move.
Speaking to CNBC at this point, Boston FED President Susan Collins said that interest rates should be kept high while the fight against high inflation continues.
Collins, who thinks the FED should keep interest rates high, said, “further tightening is definitely not off the table.”
The highlights of Susan Collins' speech are as follows:
“I expect interest rates to remain high for longer.
If economic data does not come as we want, there is still a possibility that the FED will have to increase interest rates even further.
There are some hopeful signs that inflation is moderating and the economy is rebalancing. Progress has not been linear and should be evenly distributed across sectors, but this progress has not been orderly.
At this point, I think interest rates may have to stay higher and longer than expected. This means further tightening is definitely off the table.
I support the idea that economic data should be followed when it comes to lowering interest rates. “The current policy phase requires great patience to get the right signal from the data.”
Bitcoin hit its peak of $69,000 in November 2021, when the FED started increasing interest rates.
Since the subsequent bear market is directly related to the FED's interest rate increases, it is thought that a policy change here may end the bear market and BTC may return to its old days.
*This is not investment advice.