- Rand Group analysts have found that changes to the US Federal Reserve Chairman often lead to price declines in Bitcoin.
- So far, statements by the new candidate for this post, Kevin Warsh, do not suggest that the fall in the BTC price will be repeated.
Cryptanalysts from the Rand Group indicated on a recurring pattern between Bitcoin cycles and Federal Reserve leadership changes. Their chart shows that major changes at the central bank often coincided with sharp corrections in Bitcoin.
According to statistics, after the change of management in 2015 Bitcoin fell by approximately 86%. It fell another 73% during Janet Yellen’s tenure. Since Jerome Powell’s arrival, the market has declined by approximately 60%. Each decline followed a strong rally, suggesting a repeating cycle associated with policy transitions.
Rand Group data
At the time of writing, according to According to CoinGecko, Bitcoin The stock has been trading just above $78,000, showing a slow recovery interspersed with smaller pullbacks over the past week. However, significant changes could be coming soon with the upcoming change in Fed leadership.
New Fed Chairman made it clear to support central bank independence and balance sheet reduction. However, investors have no clear idea of what policy will be. This uncertainty comes at a critical time for the US economy.
Inflation in the US rose to 3,3%, reaching its highest level in two years, largely due to rising energy prices. Oil prices rose above $115, increasing supply risks.
Bitcoin’s price is reflecting growing macroeconomic pressure. A recent attempt to break through resistance at $80,000 failed. This suggests momentum is waning, and buyers are becoming more cautious.
Retail traders are leaning toward short-term trades rather than long-term positions in cryptocurrency. Investors are keeping a closer eye on the spending of major tech companies as shifts in stock market sentiment spill over into digital assets.
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